Disney has announced that it will lay off as many as 28,000 employees as limited capacity in theme parks and the ongoing closure of the Disneyland Resort wreak havoc on its business.
Chairman of Disney Parks, Experiences and Products, Josh D'Amaro, provided a statement after sending a letter to employees.
"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-exacerbated in California by the State's unwillingness to lift restrictions that would allow Disneyland to reopen-we have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels, having kept non-working Cast Members on furlough since April, while paying healthcare benefits. Approximately 28,000 domestic employees will be affected, of which about 67 percent are part-time. We are talking with impacted employees as well as to the unions on next steps for union-represented Cast Members," said the statement.
D'Amaro said that these necessary steps will allow the company to emerge from the pandemic more effective and efficient.
"Our Cast Members have always been key to our success, playing a valued and important role in delivering a world-class experience, and we look forward to providing opportunities where we can for them to return," said D'Amaro.
Disney is taking a number of steps to assist employees with the transition with a dedicated resource center, career assistance. They are also offering resume services, career coaching, job leads and access to ongoing education programs.
"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," D'Amaro wrote to employees. "Thank you for your dedication, patience and understanding during these difficult times."
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