The Coronavirus pandemic has taken a heavy toll on not just lives but also of businesses. Disney decided to cut down its staff in the US, and the ax would fall on part-time workers. Disney's theme parks are spread across the world, and they downed shutters as the pandemic hit.
The result was a massive drop in profit during the first three months of 2020. It is understandable. The disease is highly contagious, and there is no cure as such, except avoiding direct contact with others. People are asked to stay away from crowded places. Josh D'Amaro, the chairman of Disney Parks, explains that the reduction was necessary because of the "prolonged impact" of coronavirus on business.
One of the factors responsible was physical distancing, which led to a drop in the number of visitors. The second factor was uncertainty throughout the pandemic. He admitted it was a difficult decision.
CNN quotes him saying - "As difficult as this decision is today, we believe that the steps we are taking will enable us to emerge a more effective and efficient operation when we return to normal." He also commented on the attitude of the state of California and its stand on lifting restrictions. Disney had closed is theme parks in Anaheim and Orlando in March to prevent the spread of coronavirus.
The pandemic forced Disney to take the drastic measure
Two years back Disney theme parks became a part of Google Street View.
However, things have changed within two years. The year 2020 brought in the coronavirus pandemic from China, and the disease played havoc with businesses. Disney has huge setups in the United States and even abroad. Disney World is one of its resorts located in Florida. It closed its doors in March with plans for a phased reopening in July.
They wanted to do it by adhering to the laid down safety protocols. These included fewer people at its facilities, mandatory masks for employees and guests etcetera. CNN adds that Disney wanted to reopen its resort in Anaheim, California, on July 17. That did not happen.
Disney treads with caution, keeping its employees in the picture
Disney took its employees into confidence in April and indicated possibilities of furlough because of coronavirus. It would apply to those "whose jobs aren't necessary at this time." Josh D'Amaro sent a memo to its employees explaining various actions Disney took to overcome the crisis. The fact remains that the coronavirus pandemic crippled the businesses of theme parks and resorts, and earnings dropped as did its operating profit. The travel sector also suffered from most of the aircraft on ground and cruise ships in docks. This is the stark reality of the pandemic, and recovery would depend on the return of normalcy. In May 2020, Disney theme parks were expected to lose $21 billion during the shutdown.
Some Disney parks have reopened
According to CNBC, there are Disney theme parks in different locations across the world. Some of them reopened with limited capacity. These are in Florida, Paris, Shanghai, Japan, and Hong Kong. However, both California Adventure and Disneyland have remained shuttered in Anaheim, California. The parks, experiences, and consumer products segment is a vitally important part of its business. It has been trying to persuade California state legislators to provide guidelines for reopening parks. Disney mentioned the success at its Florida parks and internationally in Paris, Shanghai, and Japan. It also highlighted the actions taken to counter the threats of coronavirus.
These include requiring masks, having sanitation stations widely available, online mobile ordering for meals, and cashless pay. On the subject of reopening, Governor Gavin Newsom told reporters during a press briefing at the end of August that state officials were "actively" working with Disneyland and other theme parks in California.