Disney World closes ‘until further notice;’ SeaWorld furloughs staff
Disney World said Friday it would be “closed until further notice,” and SeaWorld Entertainment indefinitely furloughed more than 90 percent of its workforce, sending shockwaves through a Central Florida tourism industry already reeling from the coronavirus epidemic.
Orange County Mayor Jerry Demings’ stay-at-home order took effect late Thursday, which makes it impossible for the theme parks to open before 11 p.m. on April 9. Disney and SeaWorld’s earlier goal to reopen had been to open April 1. Now, they are closed indefinitely.
“While there is still much uncertainty with respect to the impacts of COVID-19, the safety and well-being of our guests and employees remains The Walt Disney Company’s top priority,” the company said in a statement in which it said hourly workers would be paid through April 18. “As a result of this unprecedented pandemic and in line with direction pro
vided by health experts and government officials, Disneyland Resort and Walt Disney World Resort will remain closed until further notice.”
Hours later, the news came that SeaWorld was planning a massive furlough affecting nine of 10 of its workers that takes effect April 1, according to a Friday SEC filing. SeaWorld Entertainment, which is based in Orlando, runs 12 theme parks across the country. At the end of 2019, the company had nearly 11,000 parttime employees and 4,300 full-time workers.
A letter sent to employees Friday blamed government orders meant to slow down the coronavirus.
“Government orders prohibiting large gatherings, restricting travel, and mandating business closures have caused many companies to scale back or cease operations. They have caused significant disruption to our communities and are anticipated to do so for the foreseeable future,” the letter said.
SeaWorld did not respond to questions Friday to provide more details.
It’s the latest blow for SeaWorld employees, especially for the part-timers who haven’t been getting paid since the parks closed down.
One corporate employee who made it through the furloughs and will keep his job described the emotions of the day. His boss cried. He knew he would go back to work, thankful, but would have to take over other positions now that his friends were gone. He worried if his friends would be able to pay their bills.
“We cut pretty deeply,” said the employee, who lives in Clermont, requesting to be anonymous for fear of losing his job.
Employees were told to turn in their computer laptops but to keep their badges and uniforms for when the parks eventually reopened.
“The furlough period is uncertain at this time due to the temporary park closures and will be reassessed as business conditions dictate,” the SEC filing said. “The Company looks forward to welcoming back its ambassadors and guests when it is safe to open again.”
Disney’s announcement that it was paying workers came a few hours after union leaders sent a letter to the company urging it to pay its workers through April.
“Cast members are in the dark, worried how they will pay for their rents or mortgages and feed their children.” wrote Matt Hollis, who is the president of the Service Trades Council Union, a group of locals that represented 42,000 Disney employees, in a letter sent to Disney leaders on Friday.
“Disney can continue leading the way in Central Florida,” Hollis wrote in the letter addressed to Disney’s labor relations director.
In the statement Friday, Disney said, “The Walt Disney Company has been paying its cast members since the closure of the parks, and in light of this ongoing and increasingly complex crisis, we have made the decision to extend paying hourly parks and resorts cast members through April 18.”
Analysts have warned the pandemic that has shut down sports, entertainment and schools across the country will impose a financial hit on Disney, too. J.P. Morgan analyst Alexia Quadrani has estimated that if Disneyland, Disney World and Disneyland Paris were closed through May 1, it would cost Disney $1 billion in operating income.
Earlier this week, Universal Orlando Resort said it will not reopen its doors through April 19. SeaWorld Orlando has not announced a new opening date after originally planning to reopen April 1.