Disney furloughs employees ‘whose jobs aren’t necessary at this time’

Among those impacted would be the Disney Parks’ storied ‘Imagineers’ - the designers of the parks, rides and hotels

ORLANDO, FL - MARCH 23:  Walt Disney World remains closed to the public due to the Coronavirus threat on March 23, 2020 in Orlando, Florida. (Photo by Alex Menendez/Getty Images)
ORLANDO, FL - MARCH 23: Walt Disney World remains closed to the public due to the Coronavirus threat on March 23, 2020 in Orlando, Florida. (Photo by Alex Menendez/Getty Images) (2020 Alex Menendez)

Facing a complete standstill across its entertainment empire due to the coronavirus crisis, the Walt Disney Company notified its employees that it would furlough employees "whose jobs aren't necessary at this time" starting on April 19th.

Disney has been crippled by the coronavirus pandemic. Its theme parks around the world have shuttered, its cruise line is suspended and many of its biggest films of the year have been delayed. Live sporting events, the lifeblood of the Disney-owned ESPN, have also been suspended. Shares of Disney have plummeted more than 30% year to date.

The impact is hitting Disney's theme park employees especially hard. All of Disney's twelve theme parks have been shuttered since March 12th, after which the company committed to paying salaries through April 18th. In the statement, the company said there was "no clear indication of when we can restart our businesses," and that it was "forced to make the difficult decision to take the next step and furlough employees."

Among those impacted would be the Disney Parks' storied 'Imagineers' - the designers of the parks, rides and hotels.

The furloughed workers would remain employees of the company and keep their health benefits, while also being able to access federal and state aid like unemployment benefits.

After Disney shuttered Walt Disney World in Florida and Disneyland in California, it committed to paying employees through April 18th. Disney's announcement is one of the signs of the economic destruction rippling through the travel industry, which employs some 319 million workers globally.

Disney executives announced earlier this week that they were taking a pay cut because of the pandemic.

The company's CEO Bob Chapek said in an email to employees on Monday that he would taking a 50% pay cut while Bob Iger, the company's executive chairman, will forgo all of his salary.

"While I am confident we will get through this challenging period together and emerge even stronger, we must take necessary steps to manage the short and long-term financial impact on our company," Chapek wrote.

Disney has 223,000 employees worldwide. Thursday’s furlough announcement specifically relates to the company’s US employees, executives, and non-union hourly workers.