Why did Disney lay off nearly 30,000 people?

At present, Disney, whose main business is theme parks and resorts, has been severely impacted. In the second quarter of this year alone, the company suffered a huge loss of about 30 billion yuan. In order to survive, Disney not only changed its traditional business model, but also laid off nearly 30,000 people in the United States, accounting for a quarter of American jobs. So many people are worried about whether it can survive this epidemic.

According to reports, in a memo sent to employees to help Disney, Josh D' amaro, the head of Disney Park, elaborated on several "difficult decisions" they had to make after the outbreak of coronavirus, including terminating paid vacations for thousands of employees.

Damaro said in the letter, "It is not easy to make such a big decision." He pointed out that Disney's management team "has made unremitting efforts to avoid any employee leaving. We cut expenses, suspend capital projects and let our cast members take vacations while paying benefits. At the same time, we have also adjusted our operations to make them run efficiently. However, due to limited capacity, we cannot guarantee that all employees will not be fired. "

Disneyland said, "Although it is sad, due to the continuous heavy business, Disney has no choice but to lay off employees."

Extended data

Disney laid off nearly 30,000 people, and its share price once fell 1.45438+0%.

It is reported that the layoffs mainly come from Disney's experience and consumer products department, of which 67% are part-time employees, and some executives and full-time employees are also on the layoff list. The Experience and Consumer Products Division is an important part of Disney's business. Judging from the financial report of 20 19, it accounts for 37% of the company's total revenue ($69.6 billion), or $25.8 billion (about RMB175.8 billion).

However, it is worth mentioning that Disney's share price once fell 1.4 1% under the influence of the news that Disney announced that it would lay off nearly 30,000 people. However, as of165438 on October 9th, US Eastern Time, Disney's share price closed up by 1.54%, and the latest price was 124.98 USD per share, with a total market value of 225.847 billion USD.