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Disney Will Furlough Many Staff Members Starting April 19

Disney Will Furlough Many Staff Members Starting April 19

The Walt Disney Company has announced that staff members “whose jobs aren’t necessary at this time” are going to be furloughed starting on April 19.

While it’s not clear yet which employees are going to be affected by the furloughs, Disney already released a statement last month that gave insight into the areas of the business that are being shut down.

“We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts,” the company said on March 19 (via THR).

Employees who are furloughed “will receive full healthcare benefits, plus the cost of employee and company premiums will be paid by Disney.”

Earlier this week, Disney announced that top executives will be taking pay cuts and executive chairman Bob Iger will forgo his entire base salary during this time. “Effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent and EVPs and above by 30 percent,” CEO Bob Chapek announced. He is taking a 50 percent pay cut.

Click inside to read the company’s full statement on the furloughs…

Disney Statement on Staff Furloughs

The COVID-19 pandemic is having a devastating impact on our world with untold suffering and loss, and has required all of us to make sacrifices. Over the last few weeks, mandatory decrees from government officials have shut down a majority of our businesses. Disney employees have received full pay and benefits during this time, and we’ve committed to paying them through April 18, for a total of five additional weeks of compensation.

However, with no clear indication of when we can restart our businesses, we’re forced to make the difficult decision to take the next step and furlough employees whose jobs aren’t necessary at this time. The furlough process will begin on April 19, and all impacted workers will remain Disney employees through the duration of the furlough period. They will receive full healthcare benefits, plus the cost of employee and company premiums will be paid by Disney, and those enrolled in Disney Aspire will have continued access to the education program.

Additionally, employees with available paid time off can elect to use some or all of it at the start of the furlough period and, once furloughed, they are eligible to receive an extra $600 per week in federal compensation through the $2 trillion economic stimulus bill, as well as state unemployment insurance.

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Photos: Disney
Posted to: Coronavirus, Disney

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