Disney announced on Tuesday that it will lay off roughly 28,000 employees in its theme parks division, as its resorts struggle with limited attendance and the continued closure of California's Disneyland due to the coronavirus pandemic.
The company said about two-thirds of the laid-off employees are part-time workers.
In a letter sent to employees, the head of parks at Disney said the company has had to make "difficult decisions" amid the health crisis, citing parks' limited capacity and continued uncertainty about the duration of the pandemic, and said that was "exacerbated in California by the state's unwillingness to lift restrictions that would allow Disneyland to reopen."
Disney shut its theme parks around the world when COVID-19 began spreading earlier this year. All but Disneyland gradually reopened, though the company was forced to limit the number of visitors to allow for physical distancing.
The parks, experiences and consumer products division reportedly accounted for more than a third of Disney’s total revenue last year.
Shares of the company fell less than 2% in after-hours trading on Tuesday.