Economic Collapse

The New Normal, Worldwide Economic Collapse; Disney to lay off 28,000 workers at domestic theme parks and other units

The New Normal, Worldwide Economic Collapse; Disney to lay off 28,000 workers at domestic theme parks and other units

Ryan Faughnder LA Times•September 29, 2020

The COVID-19 pandemic has brought substantial layoffs to Walt Disney Co.’s massive theme park operations and other units.

The Burbank-based company said Tuesday that it would lay off 28,000 domestic employees at its parks, experiences and products division, which includes Disneyland Resort and Disney California Adventure Park in Anaheim and Walt Disney World in Orlando, Fla.

The segment, which employs 177,000 people, also includes Disney businesses such as its retail stores and four cruise ships. The layoffs affect about 13% of Disney’s 223,000-person global workforce.

The company’s global parks division has been severely hobbled by the coronavirus health crisis. In April, Disney announced it was furloughing more than 100,000 workers after the pandemic forced the company to shut down its theme parks. Disney also cut expenses, slashed executive pay and suspended major projects to save money.

During the furlough period, Disney continued to pay for workers’ benefits, including healthcare.

However, the profound, prolonged blow the coronavirus dealt to Disney’s business spurred the company to make deeper cuts.

Walt Disney World has been operating with strict capacity limits and social distancing requirements, while California has not yet allowed theme parks including Disneyland to resume business, to the frustration of executives.

Josh D’Amaro, chairman of Disney’s parks, experiences and products segment, called the decision “heartbreaking” in a memo to staff.

“As heartbreaking as it is to take this action, this is the only feasible option we have in light of the prolonged impact of COVID-19 on our business, including limited capacity due to physical distancing requirements and the continued uncertainty regarding the duration of the pandemic,” D’Amaro said in the memo.

Disney will set up appointments with affected salaried and nonunion hourly employees in the next few days. The company is also expected to soon speak with union leaders representing Disney staffers, known as “cast members,” to determine further steps, D’Amaro said. Of the 28,000 workers affected by the layoffs, 67% are part-time, the company said.

“For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company,” D’Amaro said. “We’ve cut expenses, suspended capital projects, furloughed our cast members while still paying benefits, and modified our operations to run as efficiently as possible, however, we simply cannot responsibly stay fully staffed while operating at such limited capacity.”

D’Amaro blamed the decision on the continued effect of COVID-19 on the company’s operations, which has been “exacerbated in California by the state’s unwillingness to lift restrictions that would allow Disneyland to reopen.”

D’Amaro has previously called on the state government to allow Disneyland to operate, saying the company is able to run the parks safely.

Disney last week pressed California Gov. Gavin Newsom to let Disneyland and Disney California Adventure reopen, while vowing to adopt stringent health precautions to help protect guests from the coronavirus.

The push echoed a news conference by Orange County officials, business owners and tourism industry leaders urging the state to adopt policies that would allow the resurgence of Disney parks, as well as Knott’s Berry Farm, arguing that closures had hammered the local economy.

The layoffs at Disney are the latest example of how severely the pandemic has damaged the economy, particularly in key California industries such as tourism. An estimated 31,000 people work at Disneyland Resort. Walt Disney World employs well more than 70,000 in Florida, making it one of the state’s biggest job sources.

California’s unemployment rate was 11.4% in August, down from 13.5% in July.

Unite Here Local 11, which represents hotel workers at Disneyland Resort, said the union learned Tuesday that Disney would lay off about 950 of its members, effective Nov. 1.

“The union will engage in effects bargaining with the company over issues including job security and healthcare coverage,” Unite Here Local 11 said in an emailed statement from spokeswoman Maria Hernandez.

The union also called on Newsom to sign a state bill known as AB 3216, which would establish a right-to-return policy on the hospitality industry, meaning employees who lose their jobs at hotels, airports and private clubs during the pandemic could return based on seniority when business returns to normal.

“This highlights the urgent need for AB 3216, the California state law that guarantees recall and retention for hospitality workers,” the union said. “We are asking Gov. Gavin Newsom to sign AB 3216 now.”

The health crisis has put a severe strain on virtually the entire entertainment industry, contributing to cuts at AT&T’s Warner Media and Comcast Corp.’s NBCUniversal, whose parks remain closed in Universal City.

For Disney, the effect has been particularly devastating because of the firm’s reliance on entertainment that is meant to bring people together, whether at theme parks or at cinemas. The crisis came to a head shortly after Bob Chapek, the company’s former parks chairman, took over from Bob Iger as Disney’s chief executive.

The company’s ESPN sports-TV network was hard hit by the cancellation of live sporting events earlier this year. Disney’s movie studio had delayed the release of blockbuster films amid theater closures across the country. Last week, Walt Disney Studios postponed 10 upcoming films, including Marvel’s “Black Widow” and Steven Spielberg’s “West Side Story.” Hollywood is also trying to claw its way back to producing movies and TV shows again after months of shutdowns.

In August, Disney reported a third-quarter net loss of $4.72 billion for the three months that ended in June, compared with the $1.43 billion in net income the company reported for the same period in 2019. Excluding one-time items affecting profitability, Disney posted a profit of 8 cents a share, down 94% from the same period a year earlier.

Disney’s parks, experiences and products segment suffered a $3.5-billion hit to operating income because of the effects of the coronavirus during the quarter, the company reported.

John 13:19 Now I tell you before it come, that, when it is come to pass, ye may believe that I am he.

John 14:29 And now I have told you before it come to pass, that, when it is come to pass, ye might believe.

Luke 21:31 So likewise ye, when ye see these things come to pass, know ye that the kingdom of God is nigh at hand.

Mark 13:29 So ye in like manner, when ye shall see these things come to pass, know that it is nigh, even at the doors.

Luke 21:28 And when these things begin to come to pass, then look up, and lift up your heads; for your redemption draweth nigh.

Revelation 1:1 The Revelation of Jesus Christ, which God gave unto him, to shew unto his servants things which must shortly come to pass; and he sent and signified it by his angel unto his servant John:

‘Increasing Like Labor Pains.’ ‘Fearful Sights.’ ‘Perilous Times.’ ‘Men’s hearts failing with fear.’ Great Convergence of Signs.’ REDEMPTION IMMINENT.

In His Service,

Night Watchman

Paul Rolland

Night Watchman Ministries

Make Your Decision for Christ NOW!!!!!!! Time is Up!!!!!!!

Jesus Christ’s Offer of Salvation:

The ABCs of Salvation through Jesus Christ (the Lamb)

A. Admit/Acknowledge/Accept that you are sinner. Ask God’s forgiveness and repent of your sins.

. . . “For all have sinned, and come short of the glory of God.” (Romans 3:23).

. . . “As it is written, There is none righteous, no, not one.” (Romans 3:10).

. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us.” (1 John 1:8).

B. Believe Jesus is Lord. Believe that Jesus Christ is who He claimed to be; that He was both fully God and fully man and that we are saved through His death, burial, and resurrection. Put your trust in Him as your only hope of salvation. Become a son or daughter of God by receiving Christ.

. . . “That whosoever believeth in him should not perish, but have eternal life. For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. For God sent not his son into the world to condemn the world; but that the world through him might be saved. (John 3:15-17). For whosoever shall call upon the name of the Lord shall be saved.” (Romans 10:13).

C. Call upon His name, Confess with your heart and with your lips that Jesus is your Lord and Savior.

. . . “That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.” (Romans 10:9-10).

. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us. If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness. If we say that we have not sinned, we make him a liar, and his word is not in us.” (John 1:8-10).

. . . “And he is the propitiation for our sins: and not for ours only, but also for the sins of the whole world. (John 2:2).

. . . “In this was manifested the love of god toward us, because that God sent his only begotten Son into the world, that we might live through him. And we have seen and do testify that the Father sent the Son to be the Saviour of the world. Whosoever shall confess that Jesus is the Son of God, God dwelleth in him, and he in God.” (1 John 4:9, 14-15).

. . . “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.” (Romans 5:8-10).

. . . “For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord.” (Romans 6:23).

. . . “Jesus saith unto them, I am the way, the truth, and the life, no man cometh unto the Father, but by me.” (John 14:6).

. . . “For I am not ashamed of the gospel of Christ: for it is the power of God unto salvation to everyone that believeth.” (Romans 1:16).

. . . “Neither is there salvation in any other: for there is none other name under heaven given among men, whereby we must be saved.” (Acts: 4:12).

. . . “Who will have all men to be saved, and to come unto the knowledge of the truth for there is one God, and one mediator between God and men, the man Christ Jesus.” (1 Timothy 2:4-6).

. . . “For God did not appoint us to suffer wrath but to receive salvation through our Lord Jesus Christ.” (1 Thessalonians 5:9).

. . . “But as many as received him, to them gave the power to become the sons of God, even to them that believe on his name.” (John 1:12).

True Church / Bride of Christ Spared from God’s Wrath:

 Romans 5:8-10. “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.”

Romans 12:19Dearly beloved, avenge not yourselves, but rather give place unto wrath: for it is written, Vengeance is mine; I will repay, saith the Lord.

1 Thessalonians 1:10. And to wait for his Son from heaven, whom he raised from the dead, even Jesus, which delivered us from the wrath to come.

1 Thessalonians 5:9. For God hath not appointed us to wrath, but to obtain salvation by our Lord Jesus Christ,

Romans 8:35. Who shall separate us from the love of Christ? shall tribulation, or distress, or persecution, or famine, or nakedness, or peril, or sword?

Jeremiah 30:7. Alas! for that day is great, so that none is like it: it is even the time of Jacob’s trouble, but he shall be saved out of it.

Revelation 3:10 Because thou hast kept the word of my patience, I also will keep thee from the hour of temptation, which shall come upon all the world, to try them that dwell upon the earth.

Categories: Economic Collapse

Leave a Reply