Disney World, Disneyland To Lay Off Thousands: Report

ORLANDO, FL — Disney World and Disneyland have laid off as many as 28,000 employees on Tuesday, the company announced. It's not clear how many of Disney World's 70,000 workers have lost their jobs.

Disney Parks, Experiences and Products chairman Josh D'Amaro announced the layoffs in a blanket statement to park employees, blaming coronavirus affects on business. Disneyland Resort in southern California has been closed for nearly seven months without a state guideline to reopening, the resort said.

In contrast, Disney World in Orlando began reopening in early July. Some areas or restaurants may be closed, and signs have been installed throughout Walt Disney World Resort to help guests practice physical distancing.

“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 a more effective and efficient operation when we return to normal," D'Amaro's statement said. "Our cast members have always been key to our success, playing a valued and important role in delivering a world class experience, and we look forward to providing opportunities where we can for them to return.”

Face coverings are required for all Disney World guests (age 2 and older) and employees. Visitors should bring their own face coverings and wear them at all times, except when eating or swimming. Temperature screenings are required for entry to some locations.

Other Florida attractions are also shedding employees. According to a Sept. 4 filing by Universal Orlando, the park will extend the furloughs of 5,389 workers in a variety of positions by another six months.

After losing an estimated $1.4 billion during the coronavirus closures, according to the Wall Street Journal, Disney began a pilot phased reopening of Shanghai Disneyland on May 11.

Last year, Walt Disney World had 58 million visitors.

The Walt Disney Co. recently reported sharp year-over-year third- quarter revenue drops, thanks in part to the coronavirus-prompted closure of its theme parks. Disney reported third-quarter revenue of $11.8 billion, a 42 percent drop from last year's third quarter.

The company's Parks, Experiences and Products segment saw an 85 percent revenue drop from the third quarter of last year.

In May, shortly after the initial closures, Disney officials reported its second-quarter profit dropped 91 percent to $475 million, down from $5.4 billion a year earlier. Overall, the company said costs related to COVID-19 cut Disney’s pretax profit by $1.4 billion, News 6 in Orlando reported.

In August, Disney reported a third-quarter loss of nearly $5 billion, a number that was better than analysts expected, according to the Associated Press.

The company had originally planned to reopen its Disneyland and California Adventure theme parks in Anaheim on July 17, but those plans were scrapped as the state saw a surge of coronavirus cases. That surge prompted a delay in the state's release of operating protocols for large venues such as theme parks.

Patch Editor Ashley Ludgwig contributed to this story.