Walt Disney Company disclosed their new downsizing plans to 32,000 employees in first half of 2021, from the previous 28,000 layoffs announced in September.
The layoffs, which were disclosed in a filing to the US Securities and Exchange Commission on Wednesday, was due to the continuous hammering of the coronavirus pandemic to its parks and resorts business.
On top of the layoffs, Disney announced that they’re also considering additional measures like reducing its investments in film and TV content, halting capital spending, and furloughing more employees.
“Due to the current climate, including COVID-19 impacts, and changing environment in which we are operating, the Company has generated efficiencies in its staffing, including limiting hiring to critical business roles, furloughs and reductions-in-force,” Disney mentioned in the filing.
“As part of these actions, the employment of approximately 32,000 employees primarily at Parks, Experiences and Products will terminate in the first half of fiscal 2021.”
The disclosed figure includes the previously announced parks layoffs, according to a Disney spokesperson.
While many of the pandemic’s impacts have already been well documented, Disney’s filing details as to how the pandemic has taken a toll on the company.
This includes closing down of Disneyland in Anaheim, California since mid-March, the limited closures of Walt Disney World, Disneyland Shanghai and other resorts, a fleet of cruise ships forced to dock and retail stores were shut down for months.
Film and television production had been in a standstill for most of the year, as the company was forced to cancel theatrical releases and sent handpicked titles straight to Disney Plus streaming instead.
“COVID-19 impacts could also hasten the erosion of our historical sources of revenue at our Media Networks businesses,” the company said.
Disney projects that the financial toll caused by the coronavirus pandemic will be stretched out through its fiscal 2021.