Disneyland announces additional furloughs as parks remain closed

Disneyland announces additional furloughs as parks remain closed

On Monday, Disneyland President Ken Potrock announced another round of layoffs on top of the previously announced company-wide layoffs of 28,000 employees. Out of those layoffs, approximately 10,000 are from Disneyland.

After eight months, Disneyland and Disney California Adventure have yet to reopen. These new layoffs are a direct result of California’s new guidelines for theme parks. At the time Governor Gavin Newsom said theme parks could reopen once the county, in which a theme park resides, has reached Tier 4 or Minimal status. Currently Orange County (where Anaheim is located) is in the second most restrictive tier – Tier 2 or Substantial. Potrock called the new guidelines “unworkable.”

According to Brady MacDonald, writer for The Orange County Register, “in the wake of COVID-19 reopening guidelines from Gov. Gavin Newsom’s administration … have left California theme parks “in limbo” for the foreseeable future.”

Ken Potrock, President, Disneyland Resort/Disney

In a letter to Disneyland employees, Potrock announced the furloughs to executives, salaried, and hourly Cast Members. At this time it is unclear how many employees will be affected, however those that are furloughed will be able to keep their health insurance and other benefits.

… with heavy hearts we find ourselves in the untenable situation …

Ken Potrock, President, Disneyland Resort

“After nearly eight months our parks and hotels remain closed, and while we have had some successes — like the opening of the Downtown Disney District in July, shopping and dining coming soon to Buena Vista Street and today’s announcement that we will reopen Disney Vacation Club units — the recently released state guidelines put us in limbo regarding a reopening timeline in the foreseeable future,” the memo reads. “As you know, we’ve already taken the heart-wrenching action of laying off thousands of our Cast on both coasts. We expected to be able to open our parks in Anaheim, given our proven ability to operate with responsible health and safety protocols as we have in all of our other theme parks around the world, but unfortunately, this has not been the case.”

“Since Disneyland resort closed its gates in March, nothing has been more important than fully reopening and getting our cast members back to work,” Potrock wrote. “That’s why it is with heavy hearts we find ourselves in the untenable situation of having to institute additional furloughs for our executive, salaried and hourly cast.

These decisions and actions are difficult – and we are committed to helping our teams through this and, most importantly, getting people back to work where we can,” Potrock wrote. “While the near term will be challenging as we continue to navigate in these turbulent times, I promise you that we will continue to work tirelessly to reopen the resort and get our cast members back to work, and that my optimism for our bright future continues to be strong. I want to thank each and every one of you for your resiliency and resolve during these challenging and unpredictable times.”

According to Variety, in a press conference Potrock said, “We’re not getting a solution-oriented discussion … We’re getting: Here’s the rules and you have to live with it.”

When Disneyland is permitted to reopen they will only be able to do so at a 25 % capacity.

Although the largest layoffs are coming from within the parks, experience, and products division it could be a matter of time until it starts affecting other areas of the company. This Thursday, November 12, investors and fans will get a clearer picture of how the pandemic has affected The Walt Disney Company when they announce their Q4 and year end financial results.

Feature Image: WDWNT.com

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