Disney's last announcement shows that there might be problems in advance
Disney may never be the same after the coronavirus pandemic.
Pandemic coronavirus cost millions of Americans their jobs andforced hundreds of companies to close their doors. The most recent victim of the company's compressions is one of the largest most cost-effective organizations in the United States: Disney. Throughout the pandemic, Disney has held hope to make full return, but so far it has not happened yet. According to CNBC, Disney announced on September 29 they would beLicensed 28,000 employees.
US employees affected by the cup areDisney Parks, Division of Experiences and Consumer Products, which represents 37% of the $ 69.6 billion in Total Income Disney by CNBC. According to CNN, the Disney Parks and Resorts division is solely responsible foremploying more than 100,000 people in the USA.
Following the forced park closures due to Covid, the profits of the company dropped by 91% in the first three months of 2020, CNN reports.Disney parks were able to open up to a limited capacity In Florida, Paris, Shanghai, Japan and Hong Kong, but the original California park remains closed. And while Disney strives to persuade California legislators to develop guidelines forReopened the park safely,GOV. Gavin Newsom has not yet brought compensation.
Newsweekgot the memo sent byJosh of Amaro, President of Disney Parks, Experiences and Products. The memo told employees that despite the efforts of the company to reopen the parks and keep the employees, it isIs no longer possible to keep a full staff in operation at a limited capacity.
"We initially hoped that this situation would be short-lived and that we were quickly and returning to normal", "wrote from Amaro. "Seven months later, we find that it was not the case. And, therefore, we are now obliged to reduce the size of our team through executive, employees and hourly roles."
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Amaro says the company has done everything in its power to avoid dismissing employees, but in the end, these efforts were not enough. "In recent months, our management team has worked tirelessly to avoid distinguishing anyone from society," he continued. "We have reduced expenditures, suspended capital projects, have defined our distribution members while paying benefits and modified our operations to perform as effectively as possible, but we simply can not remain responsible fully in personnel. While operating at such limited capacity. "
If this important cut employee is enough to keep Disney afloat without having to take new drastic actions remains to be seen. And to see how Disney Parks looks different now, check out these pictures ofReopening of the Disney World in the middle of coronavirus.