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The layoffs were disclosed Wednesday in a filing with the United States Securities and Exchange Commission. Disney employs around 223,000 people, according to its latest annual report. He had already announced his intention to cut around 28,000 jobs in September.
The media and entertainment giant has warned that it may also be forced to remove its dividend in the future and reduce or not its contributions to pension and retirement plans. He said he could reduce investments in television and film productions and lay off or lay off even more employees.
“Some of these measures may have a negative impact on our activities”, Disney (Dis) said in the record.
The pandemic has criticized the activity of Disney parks, which have more than 100,000 employees in the United States. The company was also forced to suspend cruises and delay the releases of major films, such as “Black Widow,” which was set to be one of the biggest blockbusters of the year.
News that the company is set to cut 4,000 more jobs than it announced in September could draw the ire of Sen. Elizabeth Warren and Abigail Disney, who have already condemned the company for the layoffs. Abigail Disney is a granddaughter of Roy O. Disney, who founded the company in 1923 with her brother, Walt Disney.
Warren accused Disney of making “short-sighted” business decisions and rewarding executives and shareholders with “high compensation packages”, dividend payouts and share buybacks in the years leading up to the crisis – a position that Disney CEO Bob Chapek called “bad”. considered and misleading. “
Abigail Disney has publicly supported the Democratic senator in the dispute.
All 12 Disney parks in North America, Asia and Europe were closed between March and May. While Disney has since reopened theme parks in Shanghai and Florida, its flagship park in California will remain closed at least until the end of 2020. Disneyland Paris was forced to close again at the end of last month when the France imposed a second national lockdown.
One bright spot has been its streaming service, Disney +, which now has some 74 million subscribers and has become the focus of the company following an overhaul of its media and entertainment division. Chapek said in a earnings release last week that its direct-to-consumer business was “essential” to the company’s future.
Disney suffered a loss of $ 2.8 billion for the year through September 30, marking a sharp reversal from the previous year, when the company posted a profit of $ 10.4 billion.
– Frank Pallotta contributed to this article.
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