Disney has announced that is laying off 28,000 people from its parks and experience division in the United States. The company said that it has taken the decision as the coronavirus pandemic hammers its business and has depressed demand. According to the company, around 67 per cent of the employees being laid off are part time workers. Disney has over 100,000 employees working in parks and resorts across the US. Disney’s bottom line suffered a big blow after the company’s theme parks were shut down in the spring because of the global COVID-19 pandemic. This is led to a drop in the company’s profit by whooping 91 per cent during the first three months of this year.
Disney Parks chairman Josh D’Amaro said the staff cuts were essential because of the prolonged impact of the coronavirus on their business. Physical distancing forced them to run in limited capacity and uncertainty regarding when the pandemic will over has led to the situation where they are laying off employees. D’Amaro said in a statement that the decision will help them to emerge a more efficient and effective operation when things will return to normal. D’Amaro added that employees of Disney have always been a key part of their huge success and played a valued and important role in giving a world-class experience.
“We will try to provide our employees opportunities where and whenever we can for them to return,” D’Amaro said. He has also blamed the state of California for the situation as they were unwilling to lift lockdown restrictions that would have allowed Disneyland to reopen. Disneyland and California Adventure, flagship resorts of the company in California have been closed since March. The Governor’s office of California has not responded to the comment. Disney had plans to reopen the Anaheim resort on July 17. But that was delayed indefinitely because of the pandemic. Disney World began a phased reopening of its resort in Florida in July. The resort reopened with a lot of safety protocols that included reduced capacity.