Disney has laid off hundreds of employees in film, TV, and finance divisions.

Following the release of positive earnings results, Disney’s stocks experienced a significant surge, rising by 21% in the weeks that followed. However, the optimism surrounding the company’s financial performance was overshadowed by the announcement of layoffs on the same day.

The news of the layoffs comes as a stark contrast to the recent success enjoyed by Disney. The company’s Disney+ streaming service has been gaining traction, with millions of new subscribers signing up during the pandemic. Additionally, the reopening of Disney theme parks around the world had initially been met with enthusiasm, as consumers sought out entertainment options after months of lockdowns.

Despite these positive developments, Disney has not been immune to the economic challenges brought about by the global health crisis. The impact of the pandemic on various sectors of the economy has forced many companies to reassess their operations and make difficult decisions to stay afloat. The entertainment industry, in particular, has been hit hard by the closure of theaters, production delays, and the cancellation of live events.

In response to these challenges, Disney has announced plans to lay off approximately 28,000 employees in its theme parks division. This decision was made in light of the continued uncertainty surrounding the future of the travel and leisure industries, as well as the need to streamline operations and reduce costs. The layoffs will affect both part-time and full-time employees, with the majority coming from the parks in Florida and California.

The news of the layoffs has sparked a mix of reactions from the public, with many expressing sympathy for those affected while also acknowledging the difficult position that Disney finds itself in. Some have criticized the company for prioritizing profits over its employees, while others have pointed out the harsh realities of the current economic climate and the challenges faced by businesses in the entertainment industry.

In a statement addressing the layoffs, Disney Chairman Bob Chapek emphasized the company’s commitment to supporting its employees during this challenging time. He highlighted the efforts being made to provide severance packages, reemployment assistance, and other resources to those affected by the layoffs. Chapek also expressed optimism about Disney’s ability to weather the current storm and emerge stronger in the long run.

As Disney continues to navigate the challenges posed by the pandemic, the company remains focused on its long-term growth strategy and commitment to delivering high-quality entertainment to audiences around the world. While the road ahead may be fraught with uncertainty, Disney’s resilience and adaptability have positioned it well to overcome the current obstacles and emerge stronger on the other side.