Disney increases layoffs to 32,000 amid coronavirus pandemic

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

In an SEC filing released Wednesday, the company revealed that thousands of employees will see their jobs laid off in the first half of fiscal 2021. The majority of those layoffs will come from its fleets, experiences and products division and will include the 28,000 workers the company previously announced in September.

Extended closures of Disney’s California-based theme parks and limited attendance at its open parks have forced the company to downsize. In addition, as of October 3, approximately 37,000 employees who should not be laid off have been placed on leave.

As of October 3, Disney employed around 203,000 people, with a global workforce of around 80% full-time workers and 20% part-time employees. Of its total workforce, approximately 155,000 employees work in the Parks, Experiences and Products business.

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

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

In the second quarter of the fiscal year, the company said it lost $ 1 billion in operating income due to the pandemic, and in the third quarter of the fiscal year, the pandemic reduced its operating income by 3, $ 5 billion.

All California theme parks remain closed as state guidelines ban reopening until coronavirus cases in counties fall below 1 in 100,000 – a target that will be difficult to achieve as cases are skyrocketing across the country.

Orange County, where the two Disneyland parks in California are located, recorded 20.2 cases per 100,000 inhabitants on Wednesday.