Disney Parks to layoff 28,000 domestic employees due to COVID-19

Disney Parks will be laying off about 28,000 domestic cast members due to the coronavirus, Disney Parks, Experiences and Products Division Chairman Josh D’Amaro announced.

Citing the prolonged impact of COVID-19, including limited capacity due to physical distancing, the uncertainty of how long this will go on and the difficulty Disney is having with the state of California to lift restrictions for Disneyland to reopen, D’Amaro said cuts will be made on all levels.

Disney has kept the staff on furlough since April and has been paying their healthcare benefits.

“About 28,000 domestic employees will be affected, of which about 67% are part-time. We are talking with impacted employees as well as to the unions on next steps for union-represented Cast Members,” he wrote.

In addition to part-timers, executive, salaried and hourly employees will also be impacted. No details on how many workers from Walt Disney World and Disneyland will be impacted.

Also part of the Disney Parks division is the Disney Cruise Line, Adventures by Disney and Disney Vacation Club.

“Over the past several months, we’ve been forced to make a number of necessary adjustments to our business, and as difficult as this decision is today, we believe that the steps we are taking will enable us to emerge more effective and efficient operations when we return to normal.

The layoffs are taking place just as union Cast Members were to receive 75 cent raises so their minimum hourly wage would be $14 per hour.

Here is the statement from D’Amaro. Below is the letter sent to employees:

Here is the letter obtained by CNBC:

Team,

I write this note to you today to share some difficult decisions that we have had to make regarding our Disney Parks, Experiences, and Products organization.

Let me start with my belief that the heart and soul of our business is and always will be people. Just like all of you, I love what I do. I also love being surrounded by people who think about their roles as more than jobs, but as opportunities to be a part of something special, something different, and something truly magical.  

Earlier this year, in response to the pandemic, we were forced to close our businesses around the world. Few of us could have imagined how significantly the pandemic would impact us — both at work and in our daily lives. We initially hoped that this situation would be short-lived, and that we would recover quickly and return to normal. Seven months later, we find that has not been the case. And, as a result, today we are now forced to reduce the size of our team across executive, salaried, and hourly roles. 

As you can imagine, a decision of this magnitude is not easy. For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company. We’ve cut expenses, suspended capital projects, furloughed our cast members while still paying benefits, and modified our operations to run as efficiently as possible, however, we simply cannot responsibly stay fully staffed while operating at such limited capacity.  

As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic. 

Thank you for your dedication, patience and understanding during these difficult times. I know that these changes will be challenging. It will take time for all of us to process this information and its impact. We will be scheduling appointments with our affected salaried and non-union hourly employees over the next few days. Additionally, today we will begin the process of discussing next steps with unions. We encourage you to visit The Hub or the WDI Homepage for any support you may need. 

For those who will be affected by this decision, I want to thank you for all that you have done for our company and our guests. While we don’t know when the pandemic will be behind us, we are confident in our resilience, and hope to welcome back Cast Members and employees when we can. 

Most sincerely, 

Josh D’Amaro
Chairman of Disney Parks, Experiences and Products

This is a developing story. Keep checking back for updates.