Marvel Entertainment will begin furloughing employees in order to stop further financial bleeding amidst the coronavirus pandemic that continues to sweep the globe. The affected employees are just the latest victims as the virus and its fallout wreak havoc across the entertainment industry.
This the latest blow for Marvel, which confirmed just weeks ago that it would be ceasing comic production and distribution on a third of its titles scheduled for May and June. This will be at least the second round of Disney furloughs this month, after Marvel Entertainment's parent company also made similar cutbacks recently at LucasFilm and Pixar. Similarly, Diamond Comics Distributor, which ships most of the country's comic books and has been shut down more than a month, announced a round of furloughs not long ago, though in a silver lining also just recently announced it hopes to be back in production as soon as mid-May.
The furloughs will go into effect April 26th, according to a report from Newsarama. Marvel didn't comment on the number of employees that will be affected, or for which division of the company they work. But they will continue to receive any work medical benefits, the source confirms, and are eligible for state unemployment until work returns to normal. Along with the comics division, there is also Marvel Studios to consider, though it's unknown how future Marvel Cinematic Universe productions may be impacted, if at all. A furlough doesn't necessarily mean that a person's position has been terminated, only that their services are temporarily no longer currently needed as more and more cities and states shelter in place. Screen Rant has reached out for comment, but it seems employees reportedly just learned of the news themselves.
The parent company has been hemorrhaging money on account of the virus, with reports saying Disney is losing up to $30 million a day. Comic sales have plummeted due to lack of a distribution channel or traditional retailers, Disney parks have been closed, and with movie theaters shut down across the country, no money is coming in from the box office. Pixar's latest offering, Onward, was set to release in theaters March 6, but instead went straight to Disney's streaming service. And the fate of other Disney owned-releases expected this year like Mulan and Black Widow - the latest entry to the MCU - are still up in the air.
Every industry around the world is feeling the hurt of the coronavirus outbreak, but it seems like the entertainment and comic book industries are suffering one blow after another, especially now with the announcement of the cancelation of 2020's San Diego Comic Con, one of the industry's cornerstone events, where Marvel always had a huge presence. There's no telling for sure when all this will blow over, so for now all we can do is try to stay safe -- and wish those employees affected the best.
Source: Newsarama