Disney Plans Furloughs for Nonessential Employees
Walt Disney is joining the growing list of U.S. companies that are furloughing employees in response to the global coronavirus outbreak.
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Walt Disney Co. (NYSE: DIS | DIS Price Prediction) is joining the growing list of U.S. companies that are furloughing employees, according to an announcement on Thursday. The Mouse House said that it will start furloughs of nonessential U.S. employees across the company on April 19, in response to the global coronavirus outbreak.
At the same time, Disney has committed to full pay and benefits for all employees through April 18 despite the closure of theme parks, halting of film and TV production and the shuttering of movie theaters.
Again, the furloughs will begin April 19, and all affected workers will remain Disney employees through the furlough period and will receive full healthcare benefits. Disney has committed to pay the cost of employee health care premiums.
The company did not say how many employees would be affected. According to its most recent annual report, Disney had 223,000 employees.
Despite coronavirus impacts on multiple fronts, such as studios and theme parks, the Disney+ streaming service has been a big winner in all this. With more people staying at home and practicing social distancing, only streaming services are seeing massive increases in engagement.
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Disney stock traded down about 2% on Friday, at $94.61 in a 52-week range of $79.07 to $153.41. The consensus price target is $138.88.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
