LOS ANGELES — In a filing to the United States Securities and Exchange Commission, Walt Disney Co. indicated it would terminate nearly 32,000 employees primarily at Parks, Experiences, and Products in the first half of fiscal 2021. This figure includes 28,000 layoffs already announced.

What You Need To Know

  • Due to the pandemic, Disney plans to terminate 32,000 employees in the first half of fiscal 2021

  • Earlier this month, Walt Disney Co. reported a fiscal fourth-quarter loss due the pandemic 

  • Its theme parks in California remain closed as COVID-19 cases surge

  • The company's streaming service Disney+ boasts 73.7 million subscribers 

The company cited the impacts of the coronavirus pandemic as the leading factor in the decision to terminate employees. 

In its 10-K form, the company wrote:

“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. Additionally, as of October 3, 2020, approximately 37,000 employees who are not scheduled for employment termination were on furlough as a result of COVID-19’s impact on our businesses.”

Earlier this month, Walt Disney Co. reported a fiscal fourth-quarter loss due mainly to changes related to the COVID-19 pandemic. Its earnings were dragged by costs from restructuring associated with its streaming services and lost revenue from its California theme parks, which remain closed amid surging coronavirus cases in the U.S.

The company also said revenue at its parks, experiences, and products business fell 61% to $2.6 billion. But it wasn’t just parks that suffered.

The company said it has suffered “significant disruption” in the production and availability of programming material — including the shift of live sports from the third into the fourth quarter and beyond. The pandemic has also led to the suspension of TV and movie production, though some has resumed in the current quarter.

It has not all been bad news for the company as it has focused on its streaming services such as Disney+, which launched a year ago and now boasts 73.7 million subscribers, surpassing analysts’ and the company’s expectations.

This month, Disney+ expanded into Latin America, and additional launches are planned for various Asia-Pacific territories in 2021, according to the company.