Walt Disney Co. plans to lay off 32,000 employees, primarily in its theme parks, as the coronavirus continues to hit the entertainment company’s businesses hard.
Disney announced 28,000 job cuts in September and expects to terminate its employees’ contracts in the first half of fiscal year 2021.
The company warned that it could take additional steps such as not declaring future dividends and reducing or not making certain payments, such as contributions to its pension and post-mortem medical plans.
The Kovid-19 epidemic has severely affected many companies globally, as leisure parks, cruise ships and movie halls have been shut down due to government lockdowns to stop the spread of the virus. The U.S. is most affected by the epidemic and it is unclear when the company will be able to reopen the Disneyland theme park in Anaheim, Calif., Which has been closed since March.
In a filing late Wednesday night, Disney said it was considering additional measures such as deferring capital spending, reducing investments in film and television content, and implementing additional furloughs.
The company warns that some of these measures could have the opposite effect on our businesses.
Disney announced its second consecutive quarterly loss earlier this month as the epidemic hit its major industries such as theme parks and movie distribution. However, the company’s direct-to-consumer business has emerged as a bright spot: Diskto. By 3, Disney + had 73 subscriptions, reported in August Gust. million crore.
The growth of Disney + encourages Disney to focus more on its streaming efforts. The initial success and potential growth of its streaming services is encouraging Wall Street, where Disney’s share price has returned to pre-epidemic levels as the number of subscribers grows.
The company said it also plans to launch a general entertainment direct-to-consumer video streaming-fringe under the Star brand outside the US in 2021.
“Despite the unknown duration of Covid-19 and the phased timing of specific business resumes, the impact of Covid-19 on our operations in the next quarter cannot be accurately estimated,” the company said.
Write PR Venkat at [email protected]
Coffee enthusiast. Travel scholar. Infuriatingly humble zombie fanatic. Thinker. Professional twitter evangelist.