Walt Disney (NYSE: DIS) has decided to layoffs 32,000 employees amid the ongoing coronavirus pandemic, which has closed down the majority of its theme parks. Furthermore, 37,000 employees, who had not been expected to be laid off, were furloughed.
On Wednesday, the company revealed in a SEC filing that thousands of employees will be terminated during the start of 2021. The majority of the terminated workers are from the company’s parks, experiences and products division.
Additionally, Disney cautioned it may need to take precautions such as not declaring future dividends and lowering or eliminating particular payments like contributions to its pension and post-retirement medical plans.
The company stated that the COVID-19 pandemic has cost its parks, experiences and products division approximately USD2.4 Billion in operational income during the fourth quarter. Revenue fell 61% to USD2.6 Billion throughout the time period.
Disney+ on the other hand, the company’s online streaming platform, has managed to grow during these uncertain times as people spend the majority of their time home. Ultimately, the company has focused most of its efforts towards streaming which has played a large part in bringing its share price back up to pre-pandemic levels.
“With the unknown duration of Covid-19 and yet to be determined timing of the phased reopening of certain businesses, it is not possible to precisely estimate the impact of Covid-19 on our operations in future quarters,” the company said.