Mickey was sad in the year of the rat.
On April 19, the British “Financial Times” reported that Disney will stop paying 100,000 employees this week, and the number of employees will account for half of its total employees.
This will save Disney nearly $ 500 million in monthly expenses to ease the company ’s economic pressure. After the news was released, Disney’s stock price fell 2.47% before the market.
36 Krypton learned from Disney staff that the current salary suspension plan mainly involves employees in American paradise and non-core businesses, while employees in China will not be affected.
Since the outbreak, the Disney theme park and hotel business has been hit hard. The parks in Europe and the United States have been closed for nearly five weeks, and the parks in Shanghai and Hong Kong have been closed as early as January. This is the first time in history that all six Disney-owned parks have closed at the same time.
Parks and resorts are Disney ’s main sources of income. Last year, Disney earned nearly $ 7 billion in operating income from the parks, experiences and products business, accounting for half of all operating profits. But since the outbreak of the new crown virus, Disney’s stock price has fallen by a quarter.
Salary cuts mean that many of Disney ’s employees will have to rely on government relief, but the company still plans to retain the executive bonus plan and the $ 1.5 billion dividend that will expire in July.
Disney Executive Chairman Bob Iger (Bob Iger) announced that he will abandon all receivables starting in April, which is the remaining $ 3 million in salary this year. Recently Bob Chapek, who succeeded Iger as CEO, will also give up Half of the 2.5 million dollar base salary.
But Disney ’s executive incentive program will still ensure that executives receive most of their income. Iger’s income in 2018 was US $ 65.6 million, compared with US $ 47 million last year. The latest compensation plan is to allow him to obtain more than 900 times the median Disney worker’s income (that is, about US $ 52,000).
Chapek may receive an annual bonus of “not less than 300% of annual salary”, in addition to a long-term reward of “not less than 15 million US dollars”.
In the past month, Disney increased debt and signed a new creditAmount, which means that the company has about 20 billion US dollars in cash flow to deal with the economic downturn. Rich Greenfield, an analyst at BTIG, believes that even if employees are not given a pay break, they should be able to afford it.
But at the same time, he believes that Disney ’s approach may be because it is ready for “the park will undergo a very long closure.”
In addition to the frustration of the paradise business, movies that were not released or filmed on time due to the outbreak this year will also increase Disney ’s trouble. In March, the Disney movie “Mulan”, which attracted the attention of Chinese audiences, announced that it would withdraw globally. The production cost of “Mulan” reached 250 million US dollars, which is a movie that Disney has high hopes for.
The economic losses caused by shifting gears must be huge. The film party originally carried out a lot of preliminary publicity work according to the plan to be released in March, and postponing the release will definitely reduce the publicity effect.
In 2019, Disney ’s global box office totaled more than US $ 11.1 billion, making it the first company in film history to exceed US $ 10 billion.
Source of title map: visualhunt