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Unfortunately, Forbes reports breaking news that Disney is taking drastic measures in the wake of the ongoing coronavirus pandemic.
Disney Will Lay off Workers in Theme Parks
Siladitya Ray covers breaking news with Forbes. Sadly, he reports that Disney projects that they “will lay off 32,000 staffers in the first half of 2021.” Unfortunately, this is because the company continues to deal with the effects of restrictions in place from COVID-19.
Ultimately, the pandemic has a greater impact on the conglomerate than any Disney fan could ever imagine. For example, lockdowns force closures of the theme parks. Additionally, low theatre attendance impacts box office sales.
More shocking numbers about the impact coronavirus has on Disney
Sadly, in September, Disney announces that they are making cuts to 28,000 jobs. These cuts come from parks, experiences, and consumer products divisions. As a whole, CNBC reports in October that their global workforce is about 203,000 people. Of this total number, 80% are full-time. However, 155,000 members of this total number work in the parks, experiences, and consumer products divisions. Notably, at this time, Disney claims that “67% of the laid-off workers were part-time staffers”, according to Forbes. Shockingly, this number doesn’t seem to include the approximate 37,000 employees that are on furlough. Furthermore, CNBC reports that these employees “were not expected to be laid off.”
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Also of note, all Disney’s theme parks are affected by restrictions in place due to coronavirus. For example, Forbes notes that the parks in Florida, Shanghai, Japan, and Hong Kong are open with restrictions. However, the parks in Anaheim, California are still closed. These parks are Disneyland and California Adventure. Located in Orange County, CNBC reports that the coronavirus cases for the area are averaging about 20.2 cases per 100,000 people. Furthermore, Disneyland Paris was open briefly, but with the second way of lockdown in place, Disney doesn’t anticipate that this theme park will reopen until February 12th.
How does this translate in the monetary realm?
When it comes to more than a quarter of a million people to be laid off in addition to another more than a quarter of a million people in furlough, the numbers seem quite daunting. However, the total loss of revenue by Disney is astronomical in proportion to that. Forbes reports that the total loser of revenue incurred is a breathtaking $6.9 billion for the 2020 fiscal year.
Sadly, during each fiscal quarter, since the pandemic began, Disney has lost money by the billions. At one point the fall in revenue is 61%. In the second quarter, Disney loses $1 billion in operating income. However, by the third quarter, the operating income sees a $3.5 billion cut.
With the numbers rolling in, it becomes increasingly alarming about what the fate of Disney may be. Do you think they’ll be able to recover from such large financial losses? Let us know in the comments below. Stay tuned to Entertainment Chronicle for this and other entertainment news.