COVID-19: Disney to lay off 32,000 workers in early 2021
The ongoing coronavirus pandemic has forced many businesses to shut down, while several others resorted to layoffs. Now, in a major setback, Walt Disney Co. on Wednesday stated that it would lay off nearly 32,000 workers, primarily at its theme parks, a rise from the 28,000 the company had announced earlier in September. The layoffs will take place in the first half of 2021.
Company struggling with limited customers
Due to the health crisis, cultural sites, theaters and theme parks were shut down. Disney has decided to lay off workers as the company is currently struggling with limited customers due to the pandemic. Earlier this month, Disney said that it was furloughing additional workers from its theme park in Southern California due to uncertainty over when parks would be allowed to reopen.
Disney theme parks which reopened earlier this year
After remaining shut for months, theme parks in Florida and those outside the United States were reopened earlier this year, with a number of measures in place including social distancing, testing and use of face masks. However, Disneyland Paris was forced to close down again last month when France imposed a new lockdown. Meanwhile, theme parks in Shanghai, Hong Kong, and Tokyo remain open.
Downfall in business led to Disney posting losses this year
The downfall in its theme park business coupled with delays or changes in the release of some of its major cinematic offerings led to Disney posting quarterly losses this year. In August, the company reported a loss of $4.72 billion for that quarter, which reportedly was its first quarterly loss since 2001. It was followed by further loss of $710 million, the next quarter.
COVID-19 outbreak has triggered widespread layoffs
The ongoing health crisis, which has wreaked havoc worldwide, has also triggered unprecedented mass layoffs. Some major companies that have announced layoffs and downsizing of their workforce amid the pandemic include Ola, Uber, Swiggy, Zomato, and others. The hotel and tourism industry as well as the entertainment industry worldwide have been badly hit by the pandemic.
