Disney Laying Off An Additional 4,000 Workers As Company Struggles During COVID Crisis
ORLANDO (CBSMiami/CNN) – Disney is laying off 4,000 more workers as the company struggles during the pandemic.
The company had already made plans to lay off 28,000 of its theme park workers back in September.
The layoffs were disclosed in a filing to the US Securities and Exchange Commission.
Disney employs around 223,000 people, according to its most recent annual report.
The media and entertainment giant warned that it may also be forced to scrap its dividend in the future, and reduce or not make contributions to pension and retirement medical plans.
It said it could slash investment in television and film productions, and furlough or terminate even more employees.
"Some of these measures may have an adverse impact on our businesses," Disney said in the filing.
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The pandemic has slammed Disney's parks business, which has more than 100,000 employees in the United States. The company has also been forced to suspend cruise ship sailings and delay major film releases, such as "Black Widow," which was expected to be one of the year's biggest blockbusters.
All 12 of Disney's parks in North America, Asia and Europe were closed between March and May. While Disney has since reopened theme parks in Shanghai and Florida, its flagship park in California will remain shut at least until the end of 2020. Disneyland Paris was forced to close again late last month when France imposed a second nationwide lockdown.
One bright spot has been its streaming service, Disney+, which now has some 74 million subscribers and has become the focus of the business following an overhaul of its media and entertainment division. Chapek said in an earnings statement last week that its direct-to-consumer business is "key" to the company's future.
Disney swung to a loss of $2.8 billion for the year to September 30, marking a sharp reversal from the previous year, when the company posted a $10.4 billion profit.
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