Walt Disney is set to lay off 32,000 people as the virus hits parks

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Walt Disney Co. plans to lay off 32,000 employees, mainly in its theme parks, as the Corona virus continues to hit entertainment businesses hard.

Disney announced 28,000 job cuts in September and expects to lay off its employees’ contracts in the first half of the 2021 fiscal year.

The company warned that it may not announce future dividends and may take additional measures such as reducing or not contributing to its retirement and post-retirement medical plans.

The Govt-19 epidemic has hit many companies around the world hard because government locks to control the spread of the virus have led to the closure of resorts, cruise ships and movie theaters. The United States is one of the worst-hit countries, and it is unclear when the company will open its Disneyland theme park in Anaheim, California.

In a lawsuit filed late Wednesday, Disney said it was considering additional measures, such as halting capital spending, reducing investment in film and television content, and implementing additional fur.

“Some of these actions could have a negative impact on our businesses,” the company warned.

Earlier this month Disney announced its second consecutive quarterly loss as the infection hit its core businesses of theme parks and movie distribution. However, the company’s direct-consumer business has emerged as a bright spot: subscriptions for Disney + reached 73.7 million as of October 3, up from more than 60 million in August.

The growth of Disney + has prompted Disney to focus even more on its streaming efforts. The initial success and potential growth of its streaming services has inspired Wall Street, where Disney’s stock price has returned to pre-epidemic levels as the number of subscribers increased.

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The company also said it plans to launch a generic entertainment live-consumer video streaming-offering under the Star brand outside the United States by 2021.

“While the unknown duration of Govit-19 and the time to reopen some businesses have not yet been determined, the impact of Govit-19 on our operations in the coming quarters cannot be accurately estimated,” the company said.

Write to PR Venkat at [email protected]

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