Disney CEO Attacks California Officials for Handling Pandemic, Keeping Parks Closed

Disney CEO Bob Chapek slammed California's local government and their handling of the COVID-19 pandemic, and calling their rules arbitrary.

Chapek added that they are extremely disappointed that the state of California continues to keep Disneyland closed despite their proven track record.

"Our health and safety protocols are all science-based and have the support of labor unions representing 99% of our hourly cast members," he was quoted in a Fox Business report.

Chapek also mentioned that other Disneyland parks have already successfully opened in Ohio, Shanghai, Tokyo, and Hong Kong based on safety protocols.

He also blamed the local government for being out of touch.

The CEO said that he believes the state officials should see objectively at what they have achieved successfully at their parks around the world.

This as opposed to imposing an arbitrary standard that is preventing their cast members from getting back to work, Chapek added.

Quarterly Report

Disney's Parks, Experiences, and Product Division had a 61 percent decrease in the revenue for the fourth quarter.

This was reduced to a $2.5 billion as compared to $6.6 billion from the previous year.

The company also posted an operating loss for this quarter of $1.1 billion.

The company said that they estimate the total net adverse effect of COVID-19 on segment operating income in the quarter was around $2.4 billion.

Meanwhile, the reopening of several Disney parks such as Walt Disney World, Shanghai Disney Resort, and Hong Kong Disneyland at reduced capacity had let the company to exceed costs with the Florida theme park's opening.

This was according to the company's financial officer Christine McCarthy.

The financial officer also said that the theme park are already 77 percent booked for the first quarter, particularly with Thanksgiving week.

Report said that this shows signs of increasing demand and trust in Disney parks.

However, the company forecasted that the Disneyland Resort will stay closed at least the end of the fiscal first quarter.

Disney shares have lost more than six percent this year, in comparison to the S&P 500's 9.5% rise.

Meanwhile, Walt Disney Co DIS.N said that they would be furloughing more workers from its Disneyland theme park in California, according to a Reuters report.

This is because the company still does not know when the state will allow its parks to reopen due to the COVID-19 pandemic.

Number of total furloughs, including executive, salaried and hourly workers, was still not known.

This is aside from the 28,000 employees who were earlier laid off in September, which was mostly across Disney's U.S. theme parks in California and Florida.

California health authorities in October killed hopes that reopening large them parks would be anytime soon.

Health officials said that opening of theme parks cannot happen until risk levels of spread and infections are reduced.

Disneyland Resort President Ken Potrock said that Disney was put in a situation of having to furlough more executive, salaried, and hourly cast.