Disney Announces lay offs of 28,000 employees
Yesterday news broke of Disney’s decision to lay off 28,000 employees within its parks, experiences, and consumer products segment.
CNBC.com reports that limited attendance at its theme parks as well as the continued closure of Disneyland, Disney had to make the hard decision to lay off employees.
Disney’s memo to its employees reads:
Team,
I write this note to you today to share some difficult decisions that we have had to make regarding our Disney Parks, Experiences, and Products organization.
Let me start with my belief that the heart and soul of our business is and always will be people. Just like all of you, I love what I do. I also love being surrounded by people who think about their roles as more than jobs, but as opportunities to be a part of something special, something different, and something truly magical.
Earlier this year, in response to the pandemic, we were forced to close our businesses around the world. Few of us could have imagined how significantly the pandemic would impact us — both at work and in our daily lives. We initially hoped that this situation would be short-lived, and that we would recover quickly and return to normal. Seven months later, we find that has not been the case. And, as a result, today we are now forced to reduce the size of our team across executive, salaried, and hourly roles.
As you can imagine, a decision of this magnitude is not easy. For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company. 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.
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.
Thank you for your dedication, patience and understanding during these difficult times. I know that these changes will be challenging. It will take time for all of us to process this information and its impact. We will be scheduling appointments with our affected salaried and non-union hourly employees over the next few days. Additionally, today we will begin the process of discussing next steps with unions. We encourage you to visit The Hub or the WDI Homepage for any support you may need.
For those who will be affected by this decision, I want to thank you for all that you have done for our company and our guests. While we don’t know when the pandemic will be behind us, we are confident in our resilience, and hope to welcome back Cast Members and employees when we can.
Most sincerely,
Josh D’Amaro
Chairman of Disney Parks, Experiences and Products
Reports say that around 67% of the layoffs were employees that were part-time but Disney has not released a breakdown of the layoffs by specific parks.
Disney has reported a loss of $1 billion during the second quarter and a $3.5 billion loss in the third quarter. This is all from the operating income lost from closures of the parks and hotels around the world in addition to the cruise line.
This is truly sad news for all of the employees of The Walt Disney Company who lost their employment as well as the guests who enjoyed the interactions with these employees daily.
