Walt Disney Co. (NYSE:DIS) cut more jobs on Friday at its theme parks amid a companywide restructuring.
Reports indicate most of the cuts are among salaried workers, known internally as backstage cast members, and estimates put the number of jobs eliminated at between 400 and 800. The layoffs follow a voluntary buyout offered in January to more than 600 executives.
With first-quarter profits off 32%, Disney announced a plan in January to cut costs by
integrating executive and back-office functions at Disney World in Orlando, Fla., and Anaheim, Calif.-based Disneyland. The effort to merge the operations is being led by Al Weiss, president for worldwide operations.
As consumers slash discretionary spending, theme parks worldwide are hurting. Six Flags Inc. (NYSE:SIX) is
racing to restructure its debt to avoid bankruptcy, while the parent of Hard Rock Park in Myrtle Beach, S.C., and Ghost in the Sky amusement, which operates a theme park in North Carolina, have already filed. (Deal Pipeline subscribers can read more
here.) And there have been reports that Anheuser-Busch InBev NV is
shopping Busch Entertainment Corp., which runs 10 theme parks in the U.S., to reduce its debt.
- Suzanne Stevens
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