Mega-company Disney will start furloughing employees this month amid the coronavirus pandemic. With a tally surpassing 1 million cases worldwide, COVID-19 has caused an upheaval in travel sectors, the stock market, the healthcare system, and the entertainment industry. Networks have suspended production on TV shows, blockbuster films are being delayed, and movie theaters have closed. In an attempt to prevent further coronavirus outbreaks, the Mouse House shuttered all Disney theme parks indefinitely. Despite the closure of Disneyland, Disney World, and the Disney cruise line, Disney Cast Members are slated to remain on the payroll until April 18.
Per Variety, Disney will begin to put employees on furlough status, starting April 19. Reportedly, Disney will select which employees to place on unpaid leave based on “whose jobs aren’t necessary at this time”. These include non-union park employees, Imagineers, and designers of the parks, rides, and hotels. As it stands, Disney employees on the furlough roaster will still receive full health-care benefits, with Disney paying the cost of premiums. It remains to be seen exactly how many Disney employees will be impacted by the mandated furlough, but Disney revealed there could be an avenue of compensation for those on job hiatus and released this statement:
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. 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.
Last week, the Walt Disney Company announced Executive Chairman Bob Iger, new CEO Bob Chapek, and other Disney executives opted to take hefty cuts to their salaries. Amid a slew of changes to the entertainment industry, Disney has attempted to make the best of the present circumstances. The Mouse House is releasing films earlier on Disney+, airing Disney sports films on ESPN in place of live sports, and correcting the aspect ratio issue on The Simpsons. However, those things will likely be little comfort to furloughed Disney employees.
Source: Variety