News: Walt Disney will stop paying more than 100,000 employees due to coronavirus closures

Compensation & Benefits

Walt Disney will stop paying more than 100,000 employees due to coronavirus closures

The company shared that it will provide full healthcare benefits for staff placed on unpaid leave.
Walt Disney will stop paying more than 100,000 employees due to  coronavirus closures

The world's biggest entertainment group operates theme parks and hotels in the US, Europe and Asia- Disney is holding pay for almost half of its workforce will save Disney up to $500m (£400m) a month.

Disney made an operating income of $1.4 BN for its parks, experiences, and products in the last three months of 2019.

The company shared in media that it will provide full healthcare benefits for staff placed on unpaid leave and urged its US employees to apply for government benefits through the $2tn coronavirus stimulus package. 

Last month Walt Disney said its Executive Chairman Bob Iger would give up his entire salary during the pandemic while chief executive Bob Chapek will take a 50 percent pay cut. Iger is one of the highest-paid executives in the entertainment sector, earning $47.5 mn last year as chairman and chief executive.

When the theme parks reopen, Iger has forecast that temperature checks of visitors could become part of its normal routine along with bag checks.

Earlier in April, more than 6.6 million people in the US filed jobless claims in the week ending 4 April. The number of Americans seeking unemployment benefits has been surging since its national lockdown, rising above six MN. Protesters have taken to the streets in the US, demanding the reopening of economies.

The shutdowns due to the coronavirus have now affected a majority of the roughly 21 MN jobs US employers have added since recovery from the financial crisis started in 2010.

More than 80 percent of the global workforce has been affected by full or partial business closure due to the pandemic, according to the International Labour Organization, which is part of the United Nations.

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Topics: Compensation & Benefits, #COVID-19

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