Even more layoffs are coming to the Walt Disney Company according to a 10-K filing filed yesterday. Variety reported the news and pointed out that new updated numbers seem to indicate “thousands more layoffs in its parks, experiences and products segment.”
Here’s what was written in the filing:
“Due to the current climate, including COVID-19 impacts, and changing environment in which we are operating, the Company has generated efficiencies in its staffing, including limiting hiring to critical business roles, furloughs and reductions-in-force. As part of these actions, the employment of approximately 32,000 employees primarily at Parks, Experiences and Products will terminate in the first half of fiscal 2021.”
It seems that Variety reached out to Disney for clarification to make sure the number was not an additional 32,000 beyond the initial 28,000, and the spokesperson clarified that the new number included the initial layoffs.
“A Disney spokesperson confirmed that that figure includes the previously announced parks layoffs. Separately, 37,000 Disney employees who are not slated to be terminated were on furlough as of Oct. 3.”
It is interesting to note that they put the following passage in as well. They MAY have to take further mitigation actions that include cuts to pensions and post retirement medical plans.
“We may take additional mitigation actions in the future such as raising additional financing; not declaring future dividends; reducing, or not making, certain payments, such as some contributions to our pension and postretirement medical plans; further suspending capital spending, reducing film and television content investments; or implementing additional furloughs or reductions in force.”
It’s also interesting to note that they are listing “reducing film and television content investments” after CEO, Bob Chapek went on about ramping it all up for Disney+ in the investor call.
Of course, they are flat out saying there could be more furloughs coming. The parks are still down in some places, but more and more Park Pass availability is opening up. They are bragging about how Disney+ subscriptions “exceeded expectations,” but they may have to “reducing film and television content investments.” So is this the actual state of the company and not the razzle dazzle song and dance they keep giving to the investors?
I just hope they can stop cutting people soon.
What do you think? Comment and let us know.
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