Walt Disney Co DIS is furloughing employees at its Southern California theme park in addition to the previously-announced 28,000 job cuts, according to Reuters. Executives, salaried employees, and hourly workers would be reportedly affected but the exact number is unknown.
What Happened: Reuters cited an internal memo from Disneyland Resort President Ken Potrock, who announced the decision over growing uncertainty about its theme parks reopening.
“The recently released state guidelines put us in limbo regarding a reopening timeline in the foreseeable future,” Potrock reportedly said.
Employees will still get to retain their health insurance even if they are furloughed, as per Reuters.
Why Does It Matter: In its third-quarter earnings report in August, Disney disclosed that its theme parks were closed for the entire quarter. For the quarter ended June 27, revenues from Parks, Experiences & Products segment fell 85%.
In September, Disney’s Theme Parks Head, Josh D’Amaro, issued an internal memo informing employees about a massive layoff. Around 28,000 or two-thirds of Disney personnel were expected to be out of jobs after the company’s “difficult decision.”
Price Action: Disney Stock surged 11.87% during Monday’s trading session to close at $142.59.
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