28,000 Disney workers will be laid off as its theme parks struggle amid coronavirus
The Walt Disney Company announced Tuesday it would lay off about 28,000 employees in a division that includes the Florida and California theme parks, due to the impact from the novel coronavirus.
Disney Parks Chairman Josh D’Amaro said the government of California is partly to blame for one of Disney’s largest layoffs in years. The impacted employees work in the Disney Parks, Experiences and Products division.
“In light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic — exacerbated in California by the State’s unwillingness to lift restrictions that would allow Disneyland to reopen — we have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels,” D’Amaro said.
Back in April, Disney furloughed its theme park employees as most theme parks across the country closed their doors due to the coronavirus pandemic. Disney has been paying those employees healthcare benefits, but they will now be among those laid off.
Of the 28,000 employees to be laid off, about 67% are part time, D’Amaro said. The layoffs will include employees at both Walt Disney World in Central Florida and Disneyland in California.
Walt Disney World and Disneyland employ about 109,000 workers across both parks. While the company would not specify how many employees work in its Disney Parks, Experiences and Products division, the layoffs would make up about a quarter of the two theme parks’ work force.
“Over the past several months, we’ve been forced to make a number of necessary adjustments to our business, and as difficult as this decision is today, we believe that the steps we are taking will enable us to emerge a more effective and efficient operation when we return to normal,” D’Amaro said.
CNBC obtained a letter sent to affected employees from D’Amaro. It listed several decisions the company made due to the pandemic.
“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic,” D’Amaro said in the letter.
Rep. Val Demings, the Democrat who represents Florida’s 10th Congressional District, which includes Disney World, released a statement urging those affected by the layoffs to seek aid.
“Like so many others over recent months, these layoffs will be devastating for countless people. It’s up to all of us to step up and help in every way we can,” Demings said. “We will be working with government and civic partners to provide as much support as possible to these workers and their families, and to all those who are out of work through no fault of their own.”
An earlier version of this story incorrectly stated the layoffs were solely affecting Disney theme parks.
This story was originally published September 29, 2020 at 5:47 PM.
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