Disney has relented to the ongoing restrictions imposed by the COVID-19 pandemic. The company has laid off about 28,000 employees at its theme parks and experiences and consumer products division, according to a memo sent from Disney on Tuesday.
“For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company,” read the memo from Josh D’Amaro, Chairman of Disney Parks. “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.”
Layoffs mainly affected part-time employees working at the Disneyland and California Adventure theme parks in Anaheim, California. The company had to reduce employees across the board, including those in hourly, salaried and executive roles.
For months, Disney attempted to keep its employees by cutting overhead costs and furloughing employees. But, the strategy proved inefficient due to the lack of business and state order preventing large crowds in close spaces.
“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,” the memo reads.
