Following the return of Bob Iger to his former position as chief executive of Disney to help weather the coronavirus storm, Disney has announced plans to stop paying over 100,000 of their employees during the pandemic.
According to The Financial Times, Disney will save around £400 million per month from its decision to stop paying almost half of their workforce. In the last quarter of 2019, the entertainment group made an operating income of $1.4 billion from its parks, products, and experiences.
The company has promised to provide full healthcare for their staff who have been placed on unpaid leave, however, they have suggested that employees based in the US apply for government benefits as part of the $2 trillion stimulus package announced by the Trump administration.
In the US the number of those seeking unemployment benefits has exceeded six million, with protestors taking to the streets to demand the reopening of economies.
Disney has fared far better than anticipated, with its newly released streaming site racking up some 50 million subscribers worldwide less than half a year after its launch.
Bob Iger has announced he will not be taking a salary during the pandemic, while Bob Chapek, the chief executive will take a 50 per cent pay cut.
In a company statement, they said: “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,” the company said in a statement.
“Over the last few weeks, mandatory decrees from government officials have shut down a majority of our businesses.”
