Disney increases layoffs to 32,000 due to coronavirus pandemic

Disney is expanding the scope of its layoffs to around 32,000 workers as the coronavirus pandemic continues to affect the theme park industry.

In a SEC filing released Wednesday, the company revealed that thousands of employees will have finished their jobs in the first half of fiscal year 2021. Most of these layoffs will come from its parks, experiences and products division and will include the 28,000 workers that the company announced earlier in September.

Prolonged closures at California-based Disney theme parks and limited presence at its open parks have forced the company to reduce its workforce. In addition, as of 3 October, some 37,000 employees who should not have been laid off have been laid off.

As of Oct.3, Disney employed approximately 203,000 people, with its global workforce comprised of approximately 80 percent full-time and 20 percent part-time employees. Of its total workforce, approximately 155,000 employees work in the parks, experiences and products segment.

This division includes all of Disney’s national and international theme parks, as well as its resorts, cruise line, and merchandising.

Earlier this month, Disney said the Covid-19 outbreak cost its parks, experiences and products an estimated $ 2.4 billion in lost operating income during its fiscal fourth quarter. The segment reported a 61% decline in revenue to $ 2.6 billion.

In the fiscal second quarter, the company reported losing $ 1 billion in operating income to the pandemic and in the fiscal third quarter, the pandemic reduced its operating income by $ 3.5 billion.

All theme parks in California remain closed, as state guidelines prohibit reopening until coronavirus cases in counties drop below 1 in 100,000 – a goal that will be difficult to achieve as cases increase all over the country.

As of Wednesday, Orange County, where the two Disneyland parks in California are located, is experiencing 20.2 cases per 100,000 people.