Disney (DIS) - Get The Walt Disney Company Report announced that it is cancelling its decades-old annual pass program at its Disneyland and California Adventure theme parks in Anaheim, California amid high levels of coronavirus and the current state-mandated shutdown of those parks.
Disney will send refunds to current pass holders with plans to return the program at some point in the future with a redesigned offering. The company will keep the pass program at its Florida parks, which remain open, unlike those in California.
“We are currently developing new membership offerings that will utilize consumer insights to deliver choice, flexibility and value for our biggest fans," Ken Potrock, president of the Disneyland Resort said.
Annual passholders who have held active accounts as of March 14, 2020 will continue to receive applicable discounts for merchandise and food and beverages at some Downtown Disney District and Buena Vista Street locations, which have begun phased reopenings for some of its restaurants.
In November, Disney said it was planning to lay off 32,000 workers by the end of March, a further reduction of its workforce amid coronavirus pandemic closures.
Most of the job cuts will take place in the company's theme parks, where thousands have already been furloughed or laid off. Some 37,000 Disney employees were on furlough as of Oct. 3, according to a November filing.
"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," Disney said in the filing.
Disney shares were rising 0.28% Friday morning to $173.92.