Actionable insights straight to your inbox

logo_equities.svg

Disneyland Furloughs Additional Workers; Reopening Date Still Unknown

“The recently released state guidelines put us in limbo regarding a reopening timeline in the foreseeable future,” wrote Disneyland Resort President Ken Potrock in a staff memo.

LOS ANGELES (Reuters) – Walt Disney Co said on Monday it was furloughing additional workers from its Disneyland theme park in Southern California, because it still does not know when the state will allow it to reopen because of the coronavirus pandemic.

The number of furloughs, which include executive, salaried and hourly workers, was not known. It comes on top of the 28,000 employees who were laid off in September, mostly across Disney’s U.S. theme parks, in California and Florida.

The furloughs was announced in a memo to staff from Disneyland Resort President Ken Potrock that was seen by Reuters. Disneyland, located in Anaheim, has been closed since mid-March.

California health authorities in October dashed hopes of the reopening of large theme parks anytime soon, saying that cannot happen until a county’s COVID-19 risk level falls to the lowest of the state’s four tiers regarding coronavirus spread and infections.

“The recently released state guidelines put us in limbo regarding a reopening timeline in the foreseeable future,” Potrock’s memo said.

As a result, Disney was “in the untenable situation of having to institute additional furloughs for our executive, salaried and hourly cast,” he said.

The furloughed employees will be able to maintain health insurance, and Potrock said he hoped to get them back to work once Disneyland eventually reopens.

Disney’s theme parks in Florida and those outside the U.S. reopened earlier this year without seeing new major coronavirus outbreaks but with strict social distancing, testing and mask use.

Disneyland Paris was forced to close again late last month when France imposed a new lockdown to fight a second wave of coronavirus cases. The company’s theme parks in Shanghai, Hong Kong and Tokyo remain open.

Reporting by Jill Serjeant; Editing by Leslie Adler.

_____

Source: Reuters

With pandemic-induced supply chain bottlenecks receding, semiconductor stocks have been riding a bullish trend, making higher lows and higher highs.
To say the current situation isn’t pretty now seems an understatement, and it’s likely to remain chaotic for a while. Which is why it’s so important for leaders of all kinds not to fall prey to the very human tendency to go negative.
Bargain-hunting friends of mine have been asking: “Should I buy First Republic?” After all, First Republic is prestigious. Facebook founder Mark Zuckerberg got a mortgage there. Dozens of customer surveys rate its satisfaction scores higher than super-brands like Apple and Ritz-Carlton.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.