Disney Furloughs Employees Across All U.S. Divisions

By Erich Schwartzel 

LOS ANGELES -- Walt Disney Co. is furloughing employees across all divisions in its domestic operations, as the world's largest entertainment company struggles with continued fallout from the spread of the novel coronavirus.

The company said only U.S. employees would be furloughed at this point but didn't say how many. Disney has more than 227,000 workers world-wide.

Nonessential workers will be furloughed beginning on April 19, making them eligible for compensation passed in the recent stimulus package. Those who have health insurance through Disney will retain it.

Nearly every corner of Disney has been rocked by the pandemic's impact, but its profitable parks division has effectively shut down amid calls to socially distance from other people.

Locations in Shanghai and Hong Kong were closed for weeks before the virus spread to the U.S. and shut Walt Disney World in Orlando and Disneyland in Anaheim, Calif., last month.

Last week, Disney said it would keep its domestic parks closed indefinitely.

Outside its theme parks, Disney's other businesses have taken a severe hit.

With movie theaters around the world closed, would-be blockbusters like the company's "Mulan" and "Black Widow" have been postponed, and production of current movies has been shut down. The suspension of the National Basketball Association season has thrown plans at its ESPN sports network into flux. Disney stores have closed.

Disney stock, which was trading at about $142 a share six weeks ago, has plummeted and closed Thursday at $96.97.

Write to Erich Schwartzel at [e-mail]

(END) Dow Jones Newswires

April 02, 2020 18:20 ET (22:20 GMT)

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