Los Angeles’ Disney increases planned layoffs to 32,000 as pandemic hits park traffic

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Los Angeles’ Disney increases planned layoffs to 32,000 as pandemic hits park traffic

In what could be witnessed as a slanderous stiffening of a cost-trimming approach from Walt Disney Co. amid a rapidly slowing US labour market, the Los Angeles, California-headquartered American multinational entertainment and mass media mogul said late on Wednesday that it would lay off as many as 32,000 workers, mostly at its theme parks, marking up an increase from a prior figure of 28,000 which it had announced back in September this year.

On top of that, Disney said in a regulatory filing with US SEC (Securities and Exchange Commission) that the planned lay offs would take place in the first half of 2021, reflecting a likely persistence plunge in traffics at its theme parks as the company has been reeling from limited customers due to the global-scale pandemic outbreak.

Besides, following the statement, a spokesman for the American entertainment conglomerate had confirmed that the additional layoffs would include the 28,000 lay offs announced a couple of months earlier.

Disney to lay off as many as 32,000 workers in fiscal H1, 2021

Aside from that, latest move from the LA-headquartered mass media company came forth at a critical time, while over 2.03 million people had collected initial jobless claims earlier this month, piling up pressures on the US Government for further fiscal stimulus which seems highly unlikely before the January 19 departure of the US President Donald Trump from Oval Office.

On top of that, as Disney had been grappling with a hike in pandemic-led expenses amid a steep downturn in traffics, the entertainment industry behemoth had furloughed additional workers from its theme park in Southern California over uncertainties on when the state Governor Gavin Newsom would allow its parks to reopen.

Nevertheless, Disney’s theme parks in Florida and those of outside the United States had reopened with strict social distancing measure, mask use and testing earlier this year, though its theme park in Paris was closed again last month following a spike in pandemic cases in Europe. However, its theme parks in Tokyo, Shanghai and Hong Kong remain open.