Disney Furloughs Employees Across All U.S. Divisions -- Update
April 02 2020 - 6:53PM
Dow Jones News
By Erich Schwartzel
LOS ANGELES -- Walt Disney Co. is furloughing employees across
all divisions in its domestic operations, as the world's largest
entertainment company struggles with continued fallout from the
spread of the novel coronavirus.
The company said only U.S. employees would be furloughed at this
point but didn't say how many. Disney has more than 227,000 workers
world-wide.
Nonessential workers will be furloughed beginning on April 19,
making them eligible for compensation passed in the recent stimulus
package. Those who have health insurance through Disney will retain
it.
Nearly every corner of Disney has been rocked by the pandemic's
impact, but its profitable parks division has effectively shut down
amid calls to socially distance from other people.
In a statement Thursday, a Disney spokesman said the company had
"no clear indication of when we can restart our businesses."
Park locations in Shanghai and Hong Kong were closed for weeks
before the virus spread to the U.S. and forced the company last
month to shut Walt Disney World in Orlando, Fla., and Disneyland in
Anaheim, Calif.
Last week, Disney said it would keep its domestic parks closed
indefinitely.
Outside its theme parks, Disney's other businesses have taken a
severe hit.
With movie theaters around the world closed, would-be
blockbusters like the company's "Mulan" and "Black Widow" have been
postponed, and production of current movies has been shut down. The
suspension of the National Basketball Association season has thrown
plans at its ESPN sports network into flux. Disney stores have
closed.
Disney stock, which was trading at about $142 a share six weeks
ago, has plummeted and closed Thursday at $96.97.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
April 02, 2020 18:38 ET (22:38 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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