Disney laying off 28,000 employees, mostly at theme parks
The company says two-thirds of those who will be laid off are part-time employees. Derek Lee/Disneyland Resort via Getty Images
Disney has just announced a huge number of layoffs: 28,000 people will lose their jobs, many from its theme parks, with Disney World in Florida running at limited capacity and Disneyland in California still closed.
Disney employs about 100,000 workers at its U.S. theme parks. The company says two-thirds of those who will be laid off are part-time employees.
The head of Disney’s theme parks unit said in a statement that uncertainty over the pandemic’s duration had made cuts unavoidable, while also blaming California’s “unwillingness to lift restrictions that would allow Disneyland to reopen.”
In Florida, Walt Disney World is open at limited capacity after the company reached a deal with unions representing workers there on various health safeguards.
Disney workers’ unions released a statement expressing disappointment over the layoffs, saying they have begun negotiations over details such as extended health benefits for affected workers.
Disney posted a loss of almost $5 billion for the three months ending in June, its first quarterly loss in nearly two decades.
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Are people still waiting for unemployment payments?
Yes. There is no way to know exactly how many people have been waiting for months and are still not getting unemployment, because states do not have a good system in place for tracking that kind of data, according to Andrew Stettner of The Century Foundation. But by his own calculations, only about 60% of people who have applied for benefits are currently receiving them. That means there are millions still waiting. Read more here on what they are doing about it.
Are we going to see another wave of grocery store shortages?
Well, public health officials are warning that we could see a second wave of the virus before the end of the year. And this time retailers want to be prepared if there’s high demand for certain products. But they can’t rely totally on predictive modeling. People’s shopping habits have ebbed and flowed depending on the state of COVID-19 cases or lockdowns. So, grocers are going to have to trust their guts.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out Tuesday from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.
READ MORE
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Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
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The company says two-thirds of those who will be laid off are part-time employees. Derek Lee/Disneyland Resort via Getty Images
Disney has just announced a huge number of layoffs: 28,000 people will lose their jobs, many from its theme parks, with Disney World in Florida running at limited capacity and Disneyland in California still closed.
Disney employs about 100,000 workers at its U.S. theme parks. The company says two-thirds of those who will be laid off are part-time employees.
The head of Disney’s theme parks unit said in a statement that uncertainty over the pandemic’s duration had made cuts unavoidable, while also blaming California’s “unwillingness to lift restrictions that would allow Disneyland to reopen.”
In Florida, Walt Disney World is open at limited capacity after the company reached a deal with unions representing workers there on various health safeguards.
Disney workers’ unions released a statement expressing disappointment over the layoffs, saying they have begun negotiations over details such as extended health benefits for affected workers.
Disney posted a loss of almost $5 billion for the three months ending in June, its first quarterly loss in nearly two decades.
STORIES YOU MIGHT LIKE
Why are some of the Disney theme parks opening while others remain closed as COVID-19 surges?
Disney World union employees still fighting for more magic in their paychecks
Disney reopenings in doubt after COVID-19 cases spike
Disney World has plans to reopen this summer — but no hugging Mickey or Goofy
Where’s the safety net for laid-off workers?
Summer brought to you by: Orlando theme parks
COVID-19 Economy FAQs
Are people still waiting for unemployment payments?
Yes. There is no way to know exactly how many people have been waiting for months and are still not getting unemployment, because states do not have a good system in place for tracking that kind of data, according to Andrew Stettner of The Century Foundation. But by his own calculations, only about 60% of people who have applied for benefits are currently receiving them. That means there are millions still waiting. Read more here on what they are doing about it.
Are we going to see another wave of grocery store shortages?
Well, public health officials are warning that we could see a second wave of the virus before the end of the year. And this time retailers want to be prepared if there’s high demand for certain products. But they can’t rely totally on predictive modeling. People’s shopping habits have ebbed and flowed depending on the state of COVID-19 cases or lockdowns. So, grocers are going to have to trust their guts.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out Tuesday from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.
READ MORE
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
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