COVID-19 Pandemic: Disney Is Set to Lay off 32000 People

Disney is set to lay off 32000 people due to the impact of COVID-19 pandemic on the theme parks.

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Disney is set to lay off 32000 people due to the impact of COVID-19 pandemic on the theme parks. PHOTO via @CNBC/27 November 2020

The company has announced in a 10K filing that Disney plans to lay off approximately 32000 people, mainly in its park.

  • The new figure includes earlier announced layoffs in the first half of Disney’s 2021 fiscal year.
  • Variety reports that as of October 3rd already 37.000 of its employees were on leave.
  • The company reported a $4.72 billion loss for the quarter, its first-quarter since 2001.
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The company says it is making these layoffs “due to the current climate, including the effects of COVID-19.” This is an increase of 4,000 compared to the 28,000 layoffs announced earlier in September .

The new figure covers layoffs previously reported  and will occur in the first half of the fiscal year 2021 of Disney, which started at the beginning of October.

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Disney stated that it considered further measures, such as the reduction of investments in film and TV content, the stopping of capital expenses, and the creation of more workers.

As of October 3, Variety reports that Disney already had 37,000 of its employees on leave.

The announcement comes after a difficult year for Walt Disney’s business. Its theme parks, in particular, are severely affected by the coronavirus infection.

Disneyland has been closed from March, though its theme park Florida Disney World was reopened earlier this year with restrictions like the need to wear facial masks  when not eating. It is not yet clear when the California park will reopen, according to the Wall Street Journal .

With its theme park issues forced delays or altered release plans for its tent-pole cinema releases, Disney is leading the way in posting a rare pair of quarterbacks this year.

In August, the company reported a $ 4.72 billion loss for the quarter, its first-quarter since 2001, according to WSJ reports. It was followed by a $ 710 million loss in the next quarter .

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Despite the challenges to its businesses, the company’s revenue helped launch its Disney Plus streaming service, which had 73.7 million subscribers in early October.

The Wall Street Journal reports that the company plans to launch another streaming service outside the United States next year under its Star brand.

By Lifestyleug.com

www.lifestyleug.com is a publication of Now and Then Entertainment Media in Kampala, Uganda. Lifestyleug is designed to source and publish articles as a mainstream lifestyle media but in the scope of the digital era’s online journalism.

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