Walt Disney Co. has announced that it will carry out further layoffs. In September, the group had already informed that 28,000 employees would be laid off. The number has now risen to 32,000. The decision is due to the heavy financial losses that the group has been suffering due to the pandemic.
Layoffs are not the only decision to deal with the crisis. Disney is still considering taking out loans, suspending dividend payments, curbing new investments and even stepping up its layoff program.
The group has 12 parks spread across North America, Asia and Europe. During the pandemic, they were all closed between March and May. In Shanghai and Florida they have already been reopened, but with limited capacity. Disney California remains closed and will probably not reopen until the end of 2020. In Paris, the park was forced to close again last month, due to a lockdown imposed by the French government due to the second wave of covid-19 that plagues Europe.
With some parks closed and capacity reduced in those that are open, the group’s revenue has fallen dramatically and there is no forecast of improvement in the near future. In addition to the parks, other sources of revenue for the group were also affected. Operations with Disney cruises are suspended.
The hope is in the streaming service, Disney +, which is already close to reaching 80 million subscribers.
The news that the Disney group is increasing its layoff program does not appeal to Senator Elizabeth Warren and the heir to the Abigail Disney group (granddaughter of Walt Disney’s brother). Discontent with the layoffs has to do with the high salaries and bonuses that continue to be paid to the executives of the group.