COVID-19 Hits Theme Parks: Walt Disney To LayOff 32,000 Staff
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Yet another traditional business model is sinking with the spread of the coronavirus. Walt Disney will be laying off 32,000 staff who primarily worked in their theme parks. The pandemic has delivered a huge blow to the entertainment industry and Disney announced a second consecutive quarterly loss. These losses are mainly due to the loss of business from theme parks and movies which have been adversely impacted due to lockdowns and the need for social distancing.
With the US bearing brunt of the pandemic, the Company is unsure when it will be able to reopen its Disneyland theme park. This park, in Anaheim, California has been closed from March 2020.
In Wednesday’s filing, the company said that it was looking at additional measures to cut costs including suspension of capital spending and implementing furloughs. It was also considering the reduction of film and content investments.
“Some of these measures may have an adverse impact on our businesses,” the company warned.
“With the unknown duration of COVID-19 and yet to be determined timing of the phased reopening of certain businesses, it is not possible to precisely estimate the impact of Covid-19 on our operations in future quarters,” the company said.
Disney’s direct-to-consumer business is one bright spot as subscriptions to Disney+ reached 73.7 million on October 3, showing an increase of 60 million from August.
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