Disney to Lay Off 28,000 at Its California, Florida Parks
The Walt Disney Co. said on Tuesday its plans to lay off 28,000 workers division at its theme parks in California and Florida.
According to Disney officials, two-thirds of the intended layoffs include part-time workers, but they ranged from salaried employees to hourly workers.
Disney parks closed last spring as the pandemic began spreading in the U.S.
The Florida parks reopened this summer. However, California parks have yet to reopen as the company follows the guidance of California.
Josh D'Amaro, chairman of Disney Parks, Experience and Product, said that California's unwillingness to lift restrictions for the park to reopen worsens the situation through a letter.
D'Amaro added that they had worked very hard to avoid layoffs.
Some of the efforts include cutting expenses, suspending projects, and modifying operations.
However, this was not enough due to the number of people allowed into the park because of social distancing restrictions and other pandemic-related measures.
"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," he was quoted.
On Tuesday, California's health secretary said the state was close to working out a way to have the theme parks reopen responsibly.
Dr. Mark Ghaly, secretary of California Health and Human Services, said that they know that many Californians are eager and thinking when that is coming.
Ghaly added that they are working with those industries to put out something thoughtful.
He also pleaded to maintain the rest of their framework strongly while following principles to ensure that those extensive activities are done responsibly.
Disney officials said the company would provide compensation for the employees, where appropriate.
The company said that they would also offer services to help workers with job replacement.
Actors' Equity Association said that officials with the union representing actors who play Disney characters were having conversations with Disney officials how they were affected.
Officials with the Service Trades Council Union said they were having similar conversations.
The Service Trades Council Union represents 43,000 workers at Disney World in Florida.
The coalition of six unions said through a statement that they were disappointed to learn that the COVID-19 crisis had resulted in Disney to make the decision to let go Cast Members.
Union leaders said that bout 950 workers from Unite Here Local 11 in California will be furloughed starting Nov. 1.
Meanwhile, Disney officials did not provide a breakdown of the layoffs between the Florida and California operations.
In Florida, Walt Disney World has about 77,000 employees.
In California, the Disneyland Resort has more than 30,00 workers.
In April, Disney laid off up to 43,000 workers while still paying for their health insurance at its Florida resorts.
It then brought back many of them after it reopened in July.
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