Disney Plans To Lay Off 32,000 Employees
The pandemic has severely affected Disney and in addition to massive pay offs may have to postpone pension payments and cancel future dividends. The U.S. is still in an uphill batlle with Covid-19 and it is unclear when Disney will be able to reopen certain parks like Disneyland in Anaheim, Calif. (closed since March). Disney said it was considering additional measures such as suspending capital spending, reducing film and television content investments and implementing more furloughs.
“Some of these measures may have an adverse impact on our businesses,” the company warned.
Disney has had two consecutive quarters of losses as theme parks and movie distribution continue to be delayed. However, subscriptions to Disney+ hit 73.7 million as of Oct. 3, up from more than 60 million reported in August.
The company said it also plans to launch a general entertainment direct-to-consumer video-streaming-offering under the Star brand outside the U.S. in 2021.
“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.