Walt Disney Co. announced 28,000 layoffs on Tuesday — financial victims of protracted theme-park closures caused by the coronavirus pandemic.
The massive job reduction was the most eye-opening among several severe cost-cutting measures made by Disney
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, which has lost billions of dollars in potential revenue because of suspended operations at its amusement parks, live-production units and cruise lines since COVID-19-imposed closures dating back to March.
“Over the past several months, we’ve been forced to make a number of necessary adjustments to our business, 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,” Josh D’Amaro, chairman of Disney Parks, Experiences and Products, said in a letter to employees Tuesday.
About two-thirds of the 28,000 who lost their jobs worked part time, according to D’Amaro. The company did not specify how many were laid off from parks.
Disneyland and California Adventure in Anaheim, Calif., remain shuttered while theme parks in Florida, Paris, Shanghai, Japan, and Hong Kong have reopened to limited capacity.
Disney shares were down 1.6% in after-hours trading on Tuesday.