Walt Disney has announced that it will cut 28,000 employees, mostly in American theme parks.
Disney cited limited visitor capacity and uncertainty about how long the coronavirus pandemic would last as reasons for the layoffs.
Disney closed all its parks earlier this year with the spread of the virus, but only Disneyland in California remains closed.
“We made the very difficult decision to begin the process of reducing the workforce in our segment for parks, experience and products at all levels,” Josh D’Amaro, chairman of the parks unit, said in a statement.
The redundancies refer to “domestic workers”, of whom about 67% are part-time.
Disney also has parks in Shanghai, Hong Kong, Tokyo and Paris that are not affected by the announcement.
Hong Kong’s Disney opened last week after closing for the second time in July over a jump in the Covid-19 case.
With the exception of Disneyland in California, all of the company’s parks are already open, although the number of visitors is limited to allow for social distancing.
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Disney lost $ 4.7 billion (£ 3.6 billion) in the three months to June 27, with revenue for its parks, experience and products division down 85 percent from the same quarter in 2019.
Mr D’Amaro said the company’s problems were “exacerbated in California due to the state’s unwillingness to lift restrictions that would allow Disneyland to reopen”.
Disney is working to persuade California to allow the company to reopen Disneyland.