With Disney's furlough numbers hitting 100,000 over the weekend, the company's stock numbers took a tumble on the New York Stock Exchange.
According to Deadline, most of the furloughed employees came from the House of Mouse's theme parks, which will reportedly save the company close to $500 million/month. However, its shares fell from over $140 two months ago to below $103 on April 20.
"The lingering effects of the COVID-19 outbreak will be felt for a number of years, and the Parks segment is unlikely to regain previous thresholds for profitability until after a vaccine is widely available," UBS' John Hodulik said. "In the meantime, the outbreak and its economic impact should drive fewer domestic and international travelers and new health precautions, social distancing and crowd aversion which will keep pressure on attendance and spending even after health officials are comfortable with the risk of re-opening. We now expect attendance to be 50% of 2019 levels when they re-open next year, growing to 75%” by the end of 2021."
The furloughed employees account for nearly half of Disney's workforce, and the company has suggested they begin seeking various state benefits.
Disney began furloughing employees in early April, shortly after executive chairman Bob Iger decided to forgo his salary and other top executives took pay cuts.