NEWS: Disney Could Be Saving $500 Million A Month From Employee Furloughs

Over the past few weeks, we’ve seen several unions who represent the many hard-working Cast Members across both Disneyland and Disney World come to an agreement on how to take care of these members during the furlough.

As of yesterday, over 100,000 Cast Members from the parks have been put on furlough during the park closures, at the Disney Parks on both coasts, which amounts to over half of its workforce.

According to a new report from Financial Times, JP Morgan analyst Alexia Quadrani estimates that furloughing Cast Members for the Disney Parks will save the Walt Disney Company approximately $500 million a month across its theme parks and hotels.

The agreements between Disney and the many unions requires that Cast Members receive health insurance coverage, educational support, and other assistance from Disney during the closure, as well as a guarantee that their jobs will be waiting for them when the parks reopen. Additionally, Disney has urged employees to apply “for the extra $600 a week of federal support available through the stimulus package.”

Over the past month, Disney has “raised debt and signed new credit facilities“. According to Rich Greenfield, an analyst for BTIG, “They [Disney] could afford [not furloughing staff].”

On the other hand, Greenfield also noted that Disney is likely braced for a “very prolonged shutdown”. According to Quadrani, “With labour accounting for approximately 45 per cent of operating expenses and 33 per cent of total expenses, we assume notable savings.”

Along with Disney furloughing employees, Disney executives have also seen salary pay cuts, as Disney has dealt with declining stock, as all sectors of The Walt Disney Company have seen some affect from the global health crisis.

What’s your favorite memory of the Disney Cast Members? Let us know down in the comments!