Industries such as entertainment are having to make major cuts in their networks in order to stay afloat with the current economy. This week, Walt Disney announced the popular animation studio Blue Sky awaits shutdown after economic downfall from this year. All areas of business have had to change but this was an unexpected closure for the brand to bear only a year after the cancellation of their last film Nimona.
COURTESY // BRAD REGIER
Walt Disney studio spokesperson stated, “ Given the current economic realities, after much consideration and evaluation, we have made the difficult decision to close filmmaking operations at Blue Sky Studio. Maintaining a third animation label has become untenable during this time.” This decision comes as an aftershock of the entertainment industry’s economic downfall concerning live events amidst COVID-19.
LA Times reported Disney, and entertainment companies alike have been struck by this pandemic and the vitality necessary from the audience and interest/ability to attend live events. The company said their net loss was 2.8 million for the year of 2020 and 32,000 people will have been laid off. Employees who are part of the studio division and theme park staff were said to be large parts of the loss.
Many people who work in those divisions would most likely desire to return once the vaccine is more accessible, thus abandoning their employment in the meantime has deserted employees. These are the same employees who helped create positive moments for thousands of people, and are now being hit very hard.
Rather than forging a creative path, a path like Disney has showcased through many of their stories, they let thousands of employees face these times alone. Business Insider reported that as of last year the company’s net worth is estimated to be around 130 billion dollars. Despite the financial challenges the company has faced , these challenges do not compare to the thousands of employees experiencing abandonment, financially from their job. The same network that has brought hope for so long is showing a different side when it comes to trying to protect their bottom line.
Chairman of Disney Parks, Josh D’Amaro told CNN that certain employees who would typically work in parks or in newly closed sections of the company would be furloughed until restrictions were lifted. However, this announcement has come without any relief to support the employees throughout their wait to return. Ultimately, while many companies are having to let go of many jobs and projects, Disney is a disappointing example of a profit over everything type of layoffs experienced.
However, Disney has been an interesting outlet to observe throughout these times, because so many people are turning to their stories and looking for hope in an unprecedented time. There is a shift starting to happen towards preferring the digital movie experience because of the adaptation of lifestyles over the last few months. Perhaps, there could be more employment opportunities because of the outlet’s success. This could be a positive change for employees as well as the company to start heading towards a new path. This trend will continue to soar for months to come this year and many years after that.
