Disney expands layoffs, bringing total to 32,000 workers as theme parks take biggest hit from pandemic
Layoffs will primarily affect the company's Parks, Experiences and Products segment
The Walt Disney Co. is increasing the number of employees planned for early 2021 by some 4,000 – mostly in its theme parks – bringing the total to 32,000, as the entertainment giant continues to fight coronavirus closings and limits due to the pandemic.
In an SEC filing Wednesday, Disney revealed its plans for the expanded layoffs -- largely in the Disney Parks, Experiences and Products division. In September the entertainment giant said it would reduce its workforce by 28,000 employees.
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Overall, the company estimates the net adverse impact of COVID-19 on its full-year segment operating income across all of its businesses was approximately $7.4 billion.
Disney Parks, Experiences and Products accounted for $6.9 billion of those losses seeing little or no revenue from shuttered theme parks or attractions like Downtown Disney which features shopping and dining. Downtown Disney in California recently reopened with restrictions and recommendations.
As of Oct. 3, Disney employed approximately 203,000 people – about 155,000 of which worked in for Disney Parks, Experiences and Products. The global workforce was comprised of approximately 80% full time and 20% part-time employees, with nearly 1% of part-time workers being seasonal employees.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 115.07 | +5.94 | +5.44% |
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The pandemic has also had an adverse impact on Disney’s merchandise licensing business. Its studio entertainment segment has delayed, or in some cases, shortened or canceled, theatrical releases -- moving several titles such as "Mulan" to its Disney+ streaming service. Its Broadway productions have been suspended since late in the second quarter.
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Advertising sales at the company's media networks and direct-to-consumer and international segments have also suffered. Since March 2020, there have been significant disruptions in the production and availability of content, including the shift of key live sports programming from the third quarter to the fourth quarter and into fiscal 2021.
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Production of most film and television content has been suspended since late in the second quarter, although some film and television production resumed in the fourth quarter, according to the filing.