There is no doubt about the heavily negative effects of the pandemic on the Disney group’s financial results. The West Coast park in California has been closed since March 14. Orlando parks began to reopen gradually on July 11, but with restrictions. The group was unable to avoid the cut in the staff and collaborators and announced the dismissal of 28 thousand people. Such a decision for an entertainment giant will certainly have considerable direct and indirect impacts on the economy of both states.
Most of the dismissed employees work only part-time, but there are also layoffs for full-time employees. The Disney Group contributes a lot to the economies of the states of California and Florida and its indirect reach is even more significant. In Orlando, for example, almost everything revolves around parks and other Disney attractions. Hotels, shops, restaurants and various other services are supported by the public who visit the theme parks annually. This audience, suddenly, practically disappeared, and for months!
In Orlando, the median listing price is $275,000, but currently over 5,100 homes in Orlando are for sale and over 2,200 homes for rent. The average rent for a studio apartment in Orlando is currently $1,140, a 13% decrease compared to the previous year. In the meantime, leisure and hospitality jobs have dropped dramatically in the Orlando area. Universal Studios, which is owned by Comcast (NASDAQ: CMCSA), also has a nearby park and, similar to Disney, announced it’s paring back its workforce in the area.