Disney will reduce its domestic workforce in its Parks, Experiences and Products segment by around 28,000 employees, division chairman Josh D'Amaro said in a statement Tuesday afternoon.
While all levels of employees will be affected, D'Amaro said the majority, around 67%, are part-time employees.
The move comes as a result of the impact of Covid-19 on Disney's businesses, "exacerbated in California by the state's unwillingness to lift restrictions that would allow Disneyland to reopen," D'Amaro said.
While the Walt Disney World Resort in Orlando has been open since mid-July, Disney's initial plans to open its theme parks in California around the same time were put on hold without proper government approvals. Citing the success of its reopenings in Orlando and elsewhere in the world, Disney has been pressing California to issue guidance to help reopen the Disneyland Resort in Anaheim.
The latest workforce reduction will affect around 28,000 domestic employees. According to Parks, Experiences and Products, Disney's theme parks around the world employ more than 170,000. Disney furloughed more than 120,000 employees earlier this year due to Covid-19; around 35% had returned from furlough by the end of July 2020, according to Security and Exchange Commission filings.
"Over the past several months, we've been forced to make a number of necessary adjustments to our business, and as difficult as this decision is today, we believe that the steps we are taking will enable us to emerge a more effective and efficient operation when we return to normal," D'Amaro said. "Our cast members have always been key to our success, playing a valued and important role in delivering a world-class experience, and we look forward to providing opportunities where we can for them to return."
In a letter to employees, D'Amaro called the latest decision "heartbreaking," but "the only feasible option we have."