The Walt Disney Co. said Tuesday it will lay off 28,000 furloughed workers in the company's California and Florida theme parks as it moves to recover from a sharp financial blow caused by the coronavirus.
Disney World and Anaheim's Disneyland closed in March as COVID-19 cases soared nationwide and state officials in California and Florida ordered businesses to close. Disney lost an estimated $500 million for every two weeks the attractions were shuttered, Chief Financial Officer Christine McCarthy said in May. Disney World reopened to limited capacity in July, but Disneyland remains closed.
Disney Parks Chairman Josh D'Amaro said in a statement that roughly two-thirds of the workers who will lose their jobs work part-time.
"Over the past several months, we've been forced to make a number of necessary adjustments to our business," he said. "And as difficult as this decision is today, we believe that the steps we are taking will enable us to emerge a more effective and efficient operation when we return to normal."
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In a letter to employees, D'Amaro said Disney leaders sought to avoid layoffs. They cut expenses, suspended projects and modified operations, but it wasn't enough given limits on the number of visitors allowed into the park because of social distancing restrictions and other pandemic-related measures.
Disney officials said the company would provide severance packages for laid-off employees, where appropriate, and also offer other services to help workers with job placement.