In the latest reports, Disney has decided to cease all payments to its 100k employees as means of cost-saving.
Disney’s gates have been closed for over 5 weeks now. The world’s largest entertainment company plans on saving 500 million dollars per month. The cost-saving measure seems rather extreme. Especially when compared to Warner Media and NBC Universal, its competitors.
The Disney staff, now on unpaid leave, has been left at the mercy of state benefits. The company, however, assures that it will provide health-care benefits to all its employees.
Last year, Disney made a profit of 7 billion dollars. Its shares have been heavily hit due to the pandemic, recording a quarter drop in its shares.
Certain Disney executives have already taken pay cuts and sacrificed their salaries for the sake of the company. Bob Iger, the Executive Chairman, gave up almost a whole year’s salary–$3 million, while CEO Bob Chapek has forgone $1.25 million, half of his yearly salary.