Disney on Tuesday announced it would cut 28,000 jobs in its parks and experiences division in the US, indicating depressed demand caused by the coronavirus and uncertainty about when it will recover.
The cuts were needed amid social distancing requirements, made worse by strict restrictions from the California government, the company said in a press release.
Around two thirds of the employees concerned are part-time employees.
“Over the past few months we have been forced to make a number of necessary adjustments to our business. As difficult as that decision is today, we believe the steps we take will enable us to become more effective and efficient when we operate we’re getting back to normal, “said Josh D Amaro, chairman of Disney Parks, Experiences and Products.
The move follows Disney’s $ 4.7 billion loss in the most recent quarter, which reflected the success of the theme park business and the derailment or postponement of major movie releases.
These negative effects were somewhat offset by the increasing demand for the streaming service “Disney +”, which controlled the premieres of “Mulan” and “Hamilton”.
Disney shares fell 1.5 percent to $ 123.57 after the close of trading.
(Except for the headline, this story was not edited by GossipMantri staff and published from a syndicated feed.)