Disneyland to Lay Off Over 32,000 Employees by First Half of Next Year

COVID-19 Direct Impact Causes Layoffs to Increase by Over 4,000 from Initial Estimates

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The world's largest entertainment company, Walt Disney, has decided to lay off approximately 32,000 employees in its theme park division by the first half of next year due to the impact of the novel coronavirus disease (COVID-19), according to the Wall Street Journal (WSJ).

This represents an increase of 4,000 from the initially announced layoff figure of 28,000 employees disclosed by Disney last September.

According to the report, Disney announced this plan in a filing submitted to the U.S. Securities and Exchange Commission (SEC).

Disney stated that due to deteriorating performance caused by the COVID-19 crisis, it will reduce company welfare levels such as employee pensions and retiree medical benefits, and may also eliminate shareholder dividends.

Disney operates a total of 12 theme parks across the United States, Asia, and Europe.

Most of the theme parks were closed during the first wave of COVID-19 in March, but Disney reopened Disney World in Orlando, Florida, USA, as well as Disneyland parks in Shanghai and Hong Kong, China, and Tokyo, Japan, under strict quarantine measures.

However, Disneyland in Anaheim, California, USA, has not reopened due to the third wave of COVID-19, and Disneyland Paris in France closed again at the end of last month following local COVID-19 re-lockdown measures.

Meanwhile, Disney recorded its first annual loss in over 40 years during this fiscal year. Closing its fiscal year at the end of September, Disney posted a net loss of $710 million (approximately 786.3 billion KRW) in the fourth quarter and an annual loss of $2.83 billion (approximately 3.1342 trillion KRW).