Dark days at the Magic Kingdom.
The Walt Disney Co. (NYSE:DIS) said it plans to lay off 28,000 workers in its "parks division" in California and Florida as attendance limits and other restrictions due to the COVID-19 pandemic hurt business at the company’s theme parks.
The company said that two-thirds of the planned layoffs involve part-time workers. Disney's parks closed last spring as the pandemic spread in the U.S. The Florida parks reopened in the summer, but the California parks have yet to reopen as the Mouse House awaits guidance from the State of California.
In a letter to employees, Disney’s management team said it worked hard to try and avoid layoffs, moving first to cut expenses, suspend projects and modify operations. However, those measures have not been enough given limits on the number of people allowed into the theme parks under pandemic-related restrictions.
Disney officials said the company would provide severance packages for the employees where appropriate, and also offer other services to help workers with job placement.
