Article Hero

Disney is laying-off 28,000 people

1601470392.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
30 September 2020
The pandemic took a swing at Disney

Just as the world sank during the #pandemic as people had to stay indoors, the amusement #parks had the same fate.  So is the case of one of the world's largest #theme parks and resorts network run by Disney

This segment of Disney has been hit the hardest by the pandemic, as the financial reports showed. Since the outbreak began, Disney lost $4.5 billion, the steepest loss being reported in Q3 - $3.5 billion.

To keep itself afloat, especially in the US, the company has to layoff 28,000 people across its parks, and Experience and Consumer Products division. The decision has been made public yesterday by Josh D'Amaro, Head of Parks, through a memo to his employees. 

In the US, the situation is more difficult than the rest of the world, as the states where Disney has theme parks don't allow the reopening of such facilities. For quite some time, Disney representatives have been working on persuading the Californian legislators to provide guidelines for reopening parks. According to the company's media updates, the safety measures imposed in parks across Florida, Paris, Shanghai, and Japan proved efficient.  Moreover, due to the Californian restrictions, the reopening of a resort in Anaheim on July 17 has been postponed indefinitely. 

There is some silver lining of this situation, as 67% of the 28,000 people will be part-time workers. Despite the difficult decision, D'Amaro is looking towards the future and ways to bring his employees back, "We look forward to providing opportunities where we can for them to return," his memo read. 

Following the news, Disney stock price lost 0.47%. Currently, the company’s stock price is trading 1.95% lower. 

Sources: cnbc.com, edition.cnn.com, finance.yahoo.com 


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.