World News – CA – Disney shares plan to cut 28,000 jobs as coronavirus closes theme parks around the world


Walt Disney Co (DIS) – Shares of Get Report fell on Wednesday after the entertainment giant announced it would lay off tens of thousands of workers at its theme parks

Disney said about 28,000 people would be affected by the decision, most of them part-time workers, following theme park closures in California, and limited capacity elsewhere due to the global coronavirus pandemic The division’s third quarter revenue actually fell 85% from last year due to closures

« Over the past few months our management team has worked tirelessly to avoid having to separate anyone from the business, » said Disney Parks Unit President Josh D’Amaro. , in a letter to employees « We’ve cut expenses, suspended capital projects, laid off our cast members while continuing to pay benefits, and changed our operations to run as efficiently as possible, however, we just can’t stay full. responsibly while operating at such a limited capacity »

Disney shares were marked 22% lower in pre-market trading on Wednesday to indicate an opening price of the bell of $ 12261 each, a move that would still leave the stock with a six-month gain of about 27%

While theme parks have been a drag on Disney’s up and down for much of the year, its Disney streaming service continues to impress, with reports suggesting the premium release ‘video On Demand  » from Mulan, a live-action film based on the legend of a fifth-century Chinese warrior, has generated nearly $ 300 million in direct revenue to consumers since its release on September 4

Analysts at Credit Suisse, however, suggest that Disney needs around $ 440 million in sales to its Disney customers in order to recoup the film’s planned box office tally, which was pulled from theaters during the peak of the coronavirus epidemic

« Given the initial demand for the Disney subscription service these first quarters after launch and the paucity of theatrical content since the start of the COVID-19 crisis, we believe it is reasonable to s ‘Expect a healthy number of Disney homes (9m) to buy Mulan despite a significantly higher price tag than previous versions of PVOD, and this experience will be important evidence for Disney’s direct-to-consumer strategy, ”Douglas wrote. Mitchelson of Credit Suisse in a recent note to clients

Disney to release fiscal fourth quarter results, which includes September, Thursday, November 5

Disney Stock

World News – CA – Disney Shares Plan to Cut 28,000 Jobs as Coronavirus Closes Theme Parks Around the World



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