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Starting on April 19, Disney will furlough 43,000 Disney World workers. They will still be eligible for their medical, dental, vision, and life insurance benefits. DIS stock is in the green.
On April 9, shares of the mass media and entertainment company the Walt Disney Company (NYSE: DIS) closed the trading session in the black, having added 3.39% to reach $104.50. After hours, Disney (DIS) stock jumped by another 1% to trade at $105.55. The increase started on Wednesday when the company announced its streaming service Disney+ has more than 50 million subscribers after launching in India and Europe. Disney rolled out this streaming service last year, projecting it would have 60 million to 90 million members by 2024.
Earlier in February, Disney released its first-quarter earnings for fiscal 2020. Its revenue totaled $20.86 billion and surpassed $20.79 billion expected. Besides, its earnings per share made up $1.53 vs. $1.44 predicted. Disney’s most profitable segment is its parks, experiences, and products. But because of coronavirus, the company is unlikely to boast good results in its next report that will come in May. Nevertheless, investors still believe Disney stock is a safe buy, as it will get back to that level of earnings. It will be time-consuming, but those who consider buying shares for a long-term perspective can invest in Disney.
Disney to Furlough 43,000 Disney World Employees while DIS Stock Is Up
The coronavirus pandemic has caused massive shutdowns, and Walt Disney had to assume quarantine measures as well. In mid-March, Disney theme parks in all parts of the world shut down. Disney World in Florida, Disneyland Resort in California, Tokyo Disneyland, Shanghai Disneyland and more closed. Recently, Disney World and the Service Trades Council Union that represents six Disney unions held talks and reached a distressing agreement. Starting on April 19, the company will furlough another 43,000 Disney World workers.
According to the Service Trades Council Union statement, those workers will still be eligible for their medical, dental, vision, and life insurance benefits. During 12 months, Disney will cover all of them. In addition, Disney will also pay for coronavirus testing of the employees.
Walt Disney Resort said:
“We are pleased to have reached an agreement with the Service Trades Council Union that will maintain members’ health insurance benefits coverage, educational support and additional employee assistance programs during a temporary furlough effective April 19. This agreement provides an easier return to work when our community recovers from the impact of COVID-19. We are grateful to have worked together in good faith to help our Cast Members navigate these unprecedented times.”
During the furlough period, Disney will have than 200 workers. They will continue to work to “support essential business functions or support the resumption of business operations.”
The Union added:
“Everyone’s job, seniority, wage rate and benefits are guaranteed through the furlough, even if you stay on furlough after Disney reopens. Seniority continues indefinitely beyond 12 months.”
How long this period will last is unknown.