Extended closings of Disneyland theme parks in California and a lack of visitors to the open parks have forced Disney to lay off 28,000 employees in its parks, experiences and consumer products division, the company said in a statement.
Disneyland parks are in the red
The parks, experiences and consumer products segment, by the way, is an extremely important part of Disney’s business. Last year it accounted for 37% of the company’s total sales of 69.6 billion US dollars – mind you in a cinema year in which blockbusters like “Avengers: Endgame” also brought millions of US dollars into the company’s coffers to have.
Since March 2020 , the company has been in the red for parks, experiences and consumer products due to closings. However, the company’s annual report for the second quarter showed that it suffered a loss of $ 1 billion . In the third quarter , Disney reported an even larger loss of $ 3.5 billion .
In a memo sent to employees Tuesday, Josh D’Amaro, director of Disneyland parks, outlined several “tough decisions” the company had to make in the wake of the coronavirus pandemic, including ending thousands of employees’ vacation.
While Disney theme parks in Florida, Paris, Shanghai, Japan, and Hong Kong reopened with limited capacity, both California Adventure and Disneyland in Anaheim, California remained closed.
“As you can imagine, making a decision on this scale is not an easy one. Over the past few months, our management team has worked tirelessly to ensure that no one had to be separated from the company. We’ve cut expenses, suspended capital projects, laid off our cast members while we’re still paying benefits, and changed our operations to run as efficiently as possible, but we just can’t responsibly stay full while we’re with such limited capacity work.”
The company has been working on new hygiene concepts since June to enable the parks to be fully opened. However, the districts around the parks report around 4.4 new Covid-19 cases per 100,000 people every day, which currently prevents the new openings from being pushed forward.