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Disney cuts 1,900 jobs at US theme parks
The Walt Disney Co said Friday it had cut 1,900 positions at its US theme parks as part of an earlier announced reorganisation, representing about 11 per cent of salaried employees in the division.
- AP/Bloomberg
- Published: 22:46 April 4, 2009
- The crowds still flock to the Magic Kingdom. Disney says the job cuts will affect managerial and salaried staff, not employees who deal with park visitors.
- Image Credit: Bloomberg News
Los Angeles: The Walt Disney Co said Friday it had cut 1,900 positions at its US theme parks as part of an earlier announced reorganisation, representing about 11 per cent of salaried employees in the division.
Some 1,200 people were laid off and 700 open positions will be left unfilled in the second phase of a reorganisation begun in 2005 that was accelerated by the recession.
The company did not say whether it would book a severance charge, or how much the cuts would save.
"These decisions were not made lightly, but are essential to maintaining our leadership in family tourism and reflect today's economic realities," said Disney spokeswoman Tasia Filippatos in a statement.
The latest reorganisation, designed to further unify two units operating separately at parks in Orlando, Florida, and Anaheim, California, was announced in February, but new leadership put in place took time to determine what cutbacks were necessary.
The vast majority of the cuts came from managerial and other salaried staff, not from employees in the parks who interact with park visitors. Some further reductions are planned.
Among the cuts announced Friday were 50 executives who accepted a voluntary buyout that was offered to 600 people.
Disney shares, which fell 21 cents, or 1 per cent, to close at $20 (Dh73.4), gained 13 cents in after-hours trading.
Theme-park profit is projected to decline 35 per cent this fiscal year, Imran Khan, an analyst at JPMorgan Chase & Co, said in a note to investors Friday. Attendance is "broadly in line" with last year, while discounts and promotions are reducing spending, he wrote.
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