After $6.9 Billion Loss Disney Plans 2021 Layoffs

The Walt Disney Company lost $6.9 billion in operating costs during their fiscal year 2020 and have plans to lay off tens of thousands of employees in 2021.

In Wednesday’s  U.S. Securities and Exchange Commission filing, Disney revealed their “most significant impact of COVID-19 on fiscal 2020 operating results was an estimated detriment of approximately $6.9 billion on operating income at our Parks, Experiences and Products segment due to revenue lost as a result of the closures or reduced operating capacities.”

The company “furloughed over 120,000 of our employees (who continued to receive Company provided medical benefits), many of which have returned from furlough as certain business operations have reopened. At the end of September, the Company announced a workforce reduction plan that would primarily impact Parks, Experiences and Products. Overall, approximately 32,000 employees will be terminated in the first half of fiscal 2021.”

“We may take additional mitigation actions in the future such as raising additional financing; not declaring future dividends; reducing, or not making, certain payments, such as some contributions to our pension and postretirement medical plans; further suspending capital spending, reducing film and television content investments; or implementing additional furloughs or reductions in force. Some of these measures may have an adverse impact on our businesses.”

“The Company employed approximately 203,000 people as of October 3, 2020. Our global workforce is comprised of approximately 80% full time and 20% part time employees, with nearly 1% of the part time population being seasonal employees. Of the total population as of October 3, 2020, approximately 155,000 of our employees worked in the Parks, Experiences and Products segment.”

“COVID-19 and measures to prevent its spread impacted our segments in a number of ways, most significantly at Parks, Experiences and Products where our theme parks were closed or operating at significantly reduced capacity for a significant portion of the year, cruise ship sailings and guided tours were suspended since late in the second quarter and retail stores were closed for a significant portion of the year.”

Disney’s Parks and Experiences include their theme parks and resorts at Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort (48% ownership interest); and Shanghai Disney Resort (43% ownership interest), “all of which are consolidated in our results. Additionally, the Company licenses our intellectual property to a third party to operate Tokyo Disney Resort.◦Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions (73% ownership interest), Adventures by Disney and Aulani, a Disney Resort & Spa in Hawaii.”

•Walt Disney World Resort closed from March 16, 2020 through July 10, 2020

•Disneyland Resort closed March 14, 2020 and continues to be closed, except for the Downtown Disney district which reopened on July 9, 2020

•Disneyland Paris closed from March 14, 2020 through July 14, 2020 and closed again on October 30, 2020

•Hong Kong Disneyland Resort closed from January 26, 2020 through June 17, 2020 and July 15, 2020 through September 24, 2020

•Shanghai Disney Resort closed from January 25, 2020 through May 10, 2020

•Tokyo Disney Resort closed from February 29, 2020 through June 30, 2020

•Disney Cruise Line sailings have been suspended since March 14, 2020

2 thoughts on “After $6.9 Billion Loss Disney Plans 2021 Layoffs

  1. Walt’s dream was intact and thriving until he passed away. Once the suits got hold of Disney, the result is what we have now. The list of parks and other holdings say’s it all, and, Eisner was paid handsomely for ruining an American institution.

    Liked by 2 people

  2. You are correct, Phil, eisner laid waste to a mouse and a way of life. His sexploitation of the image and branching into new areas of ‘entertainment’ for more profit is a different method than used by the radical democrats to bring a fantasy world to its knees. The rat-ical cities, nyc, chicago, la, san fran, portland, detroit, watts, liberty city, need to hire him as they are being over run with rats. It might be a good time to buy NYSE: DIS rats are roaches are always with us. Coming to a city near you.

    Liked by 1 person

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