With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
Disney Announces Mass Worker Furloughs As Pandemic Pummeling Continues
A pedestrian walks past the boarded up Disney Store on Michigan Avenue on March 27, 2020 in Chicago, Ill. Scott Olson/Getty Images
In good times, few media giants were more successful than the Walt Disney Co. But with the global economy in tatters, with pandemic-related spending on recreation plummeting, Disney is now suffering more than almost any other entertainment company.
The Burbank-based Disney, with some 220,000 employees worldwide, said in a statement Thursday that it would furlough an unspecified number of workers “whose jobs aren’t necessary at this time.” The cuts are set to take effect on April 19.
While many smaller companies with a narrow business focus have been devastated by the coronavirus outbreak — think airlines and restaurants — the pandemic has hit almost every one of Disney’s core businesses.
Disney’s dozen theme parks, which contribute almost half of the company’s profits, are locked up around the globe. The company’s cruise ships are empty, as are theaters where musicals like “The Lion King” would play. With essentially every domestic and international multiplex shut down, there’s no way Disney can exhibit its movies, which include the Pixar, Marvel and LucasFilm brands. The release dates for the presumptive blockbusters “Mulan” and “Black Widow” have been scrapped.
Sponsored message
With no new movies coming out, related consumer product sales are stalled, and the nearly 400 Disney Stores around the world are closed. As you might have noticed, there’s not a whole lot of live sports these days, so Disney’s massive ESPN franchise can’t broadcast games or highlights, which has cost the network millions in lost advertising and viewership.
The majority of Disney employees work in the division that includes theme parks. Disney said it would continue to provide health insurance to its furloughed workers. It’s unclear how the company will work with unions that cover some employees, where furloughs might not be permissible.
Earlier this week, Disney said it would cut the pay of its leadership staff, including new CEO Bob Chapek. While the overall stock market is off sharply this year, the price of Disney’s shares have fallen even worse, and are off about 35% so far in 2020.
MORE ON CORONAVIRUS:
- Your No-Panic Guide To Coronavirus In LA So Far
- Tracking The Spread Of COVID-19
- Have A Question? We Will Answer It
DON'T MISS ANY L.A. CORONAVIRUS NEWS
Get our daily newsletter for the latest on COVID-19 and other top local headlines.
Terms of Use and Privacy Policy
Sponsored message
Support our free, independent journalism today. Donate now.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Senior Vice President News, Editor in Chief
