Disney announces additional job cuts amid resurgence in Covid-19 cases
The company expects to complete the job cuts during the first half of 2021.
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-27 10:58

Walt Disney Co. (DIS) recently announced that it is looking to trim 32,000 workers due to resurgence of Covid-19 that has been severely hurting its operations. The latest announcement will mainly affect employees working at its theme parks. 

The Burbank, California-based entertainment company was initially planning for 28,000 job cuts, though the latest additions in the original plan indicates the demeriting operating environment for businesses around the world, particularly those linked with the entertainment and travelling industries. Disney expects to complete the job cuts during the first half of 2021. 

Governments around the world have been reimposing lockdowns to limit the rising number of Covid-19 cases as winter approaches. The practice has hurt many companies globally. The preventive measures following the pandemic has resulted in closure of cinemas, leisure parks, and cruise ships. 

The United States has seen the highest number of Covid-19 cases in the world, and Disney is not sure when it will be able to open its theme park located in Anaheim, California, which has been closed for public since March. 

The company also disclosed in a filing that it was looking into options like reducing capital spending, cutting film and TV investments, and additional furloughs. It also warned about the negative effects of the aforesaid measures on its business. 

Earlier this month, the company reported a loss for the fourth quarter, marking the second straight loss in a year. On the bright side, subscription for Disney+ reached 73.7 million in the quarter, marking a significant surge from 60 million in the prior quarter. 

Disney shares have performed well this year. Despite the negative effects of the pandemic on several segments, the company’s stock did not lose any value. Overall, the stock rose nearly 2.5 percent on a year-to-date basis. 


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-27 10:58

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.

DIS
$176.46
$2.05 1.18%
Perf. YTD -1.43%
52W high -13.08%
52W low 50.52%
PE Ratio 284.89
MKT Cap 320.65B

Analyst Ratings
Target Price $210.23
# of Analysts 26
Last updated 2021-09-20


Better Investment: Disney or Netflix
Let’s take a closer look at two of the more successful companies on the markets today.
By Mike Sakuraba | 1 week ago

2 Stocks for Investing in the NFL
The NFL is the single most profitable sports league in the world.
By Mike Sakuraba | 1 month ago

Netflix is Still the Streaming King
Early on in the COVID-19 pandemic, Netflix (NASDAQ:NFLX) was heralded as one of the big winners of the new stay at home economy.
By Mike Sakuraba | 3 months ago

2 Reopening Stocks to buy now
Let’s take a look at two blue chip companies who are set to benefit from the world getting back to a sense of normalcy in 2021.
By Mike Sakuraba | 7 months ago

Disney reports its financial results for the fourth quarter, shares up
The company’s Disney+ paid subscribers reached to 73.7 million in the quarter, significantly higher than 57.5 million in the prior quarter
By Staff | 11 months ago
DIS

Considering investing on Disney or Comcast? Read this first.
What you need to know before jumping in.
By Alejandro | 1 year ago