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In light of the Covid-19 crisis, lockdowns and prolonged business closure forced Disney’s California-based theme parks to lay off 28,000 employees. According to Disney, since there is limited attendance at its open recreational areas, the employees across the parks, experiences, and consumer products division will lose their jobs.
In a memorandum sent to workers on Tuesday, Josh D’Amaro, head of parks at Disney, relayed in detail a few troublesome choices the organization has needed to make in the wake of the COVID pandemic, including laying-off thousands of its employees.
“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.”Josh D’Amaro
D’Amaro expressed that a decision of this magnitude is not easy for them.
“We’ve cut expenses, suspended capital projects, furloughed our cast members while still paying benefits, and modified our operations to run as efficiently as possible. However, we simply cannot responsibly stay fully staffed while operating at such limited capacity.”Josh D’Amaro
Despite Disney’s decision, D’Amaro expressed that employees have always been key to their success, “playing a valued and important role in delivering a world-class experience.” Cited in a news report, he said, “we look forward to providing opportunities where we can for them to return.”
In California, Disney parks stay shut while Florida parks, which resumed in July, have been failing to meet business goals and expectations. Additionally, the company had furloughed 100,000 representatives worldwide at the stature of the lockdowns in the spring. Many were brought back when Walt Disney World resumed this late spring.
Amusement parks have taken the brunt of the cost as the infection has restricted or suppressed social gatherings. In the latest April-June quarter, Disney’s amusement park division revealed not precisely a billion dollars in income, after taking in almost $7 billion in a similar period in 2019. The division lost $2 billion over the period.
D’Amaro partially blamed California’s province for its reluctance to lift limitations that would permit Disneyland to return. Disneyland and California Adventure, the company’s leader resorts in California, have been shut since March. The California governor’s office didn’t promptly react to demand comment.
Walt Disney depends on the travel industry from other states. As a result of the cutback, airlines also plan to cut 35,000 jobs since people postpone their travel plans.