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Jim Cramer Discusses Disney's Layoffs

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Disney is significantly downsizing its workforce amid a challenging period for its theme parks.

The media giant is laying off 28,000 employees in response to the pandemic, which has hammered its parks and other lines of business. Josh D’Amaro, Disney's head of parks, experiences and products, announced the layoffs in an email to employees on Tuesday.

Disney shares fell 1.4% in after-hours trading on the news.

The email, cited by CNBC, indicated that 67% of the laid-off workers were part-time employees. The layoffs affected Disney's parks, experiences and consumer products segment, which consists of its theme parks and resorts, cruise lines, vacation programs and other businesses.

“For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company. 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,” wrote D'Amaro.

Disney's parks worldwide have been closed or operating at limited capacity since March, when the company shut them down in response to the COVID-19 pandemic.

In its fiscal third quarter, the first to overlap completely with the pandemic, Disney reported an 85% drop in its parks, experiences and products revenue. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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