Disney Sacks Staff At HK Disneyland, Attendance Tumbles
Hong Kong Disneyland cut jobs after sustaining its first loss in four years amid a slump in mainland visitors to the city.
Friday, Hong Kong media reported that The Walt Disney Co.’s (NYSE:DIS) theme park sacked about 100 workers. Hong Kong Disneyland reviews operational needs from time to time to improve efficiency, the company said in a statement Friday.
“It is important for the company to maintain a solid foundation for sustainable, long-term growth,” Disney said. “We regularly make operational adjustments to ensure we deliver great guest and cast experiences in the most efficient way possible, in order to pave the way for future development.”
Business at the HK park has suffered during the political unrest in Hong Kong and a weaker economy on Mainland China.
Attendance fell 9% to 6.8-M guests in FY 2015 from a year earlier, according to an annual review released by the company.
Hong Kong Disneyland employed more than 5,300 full-time and 2,500 part-time staff last year, making it one of the city’s largest employers.
Hong Kong Disneyland recorded a loss of $19-M in the year that ended in October 2015. The resort had posted 7 years of losses since its Y 2005 opening, before turning its 1st profit in Y 2012.
In March, managing director Andrew Kam resigned and was replaced by Samuel Lau, who was Vice President of Operations at the park.
Disney is continuing to invest in new attractions in Hong Kong including the new Iron Man Experience ride and the resort’s 3rd hotel, Explorers Lodge.
There may be more competition coming from Disney itself as the company is set to unveil its 1st theme park on Mainland China in Shanghai in June. That park is 3X bigger than Hong Kong Disneyland.
|HeffX-LTN Analysis for DIS:||Overall||Short||Intermediate||Long|
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