Walt Disney has announced it will lay off 28,000 employees, mostly in its US theme parks.
Disney cited the limited number of visitors to the parks and the uncertainty about how long the coronavirus pandemic would last as reasons for the layoffs.
Disney closed all of its parks earlier this year when the virus spread, but only Disneyland, California, will remain closed.
“We have made the very difficult decision to start cutting our workforce in our parks, experiences and products segment at all levels,” said Josh D’Amaro, chairman of the parks division, in a statement.
The layoffs apply to “domestic workers”, approximately 67% of whom are part-time.
Disney also has parks in Shanghai, Hong Kong, Tokyo, and Paris that are unaffected by the announcement.
Hong Kong Disney reopened last week after it closed for the second time in July due to a surge in Covid-19 cases.
With the exception of Disneyland, California, all of the company’s parks have now reopened, although visitor numbers are limited to allow social distancing.
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Disney lost $ 4.7 billion (£ 3.6 billion) in the three months ended June 27, with sales for its Parks, Experiences and Products division down 85% year over year.
Mr D’Amaro said the company’s problems were “exacerbated in California by the unwillingness of the state to lift restrictions that would allow Disneyland to reopen.”
Disney has been working to convince California that the company can reopen Disneyland.