Disney estimated a huge slash in profits on Tuesday of $1.4 billion, largely thanks to stay-at-home measures which have shuttered its theme parks around the world and brought film and television production to a screeching halt.
Gloria Tso reports.
Walt Disney estimated a huge slash in profits on Tuesday (May 5) -- to the tune of $1.4 billion.
That hit is largely thanks to stay-at-home measures that have shut down its theme parks around the world.
However, the company says it plans to reopen the Shanghai Disneyland Park next week--with a reduced number of visitors.
They'll also require masks, temperature screenings and other social distancing measures.
Disney executives say it's unclear when other parks around the world will be able to welcome visitors, or when the company's retail stores, cruise ships and other various businesses will return.
Just three months ago, Disney was boasting about 2019, a record year for its movie studio, and a strong start to the company's foray into the streaming service wars with Disney Plus hits like the Mandalorian.
But in January the Shanghai and Hong Kong Disneyland parks were closed -- and by mid-March all the company's parks had shut down.
The cancellation of major sports events left Disney-owned ESPN with little to broadcast.
TV and film production was put on hold.
Movie theaters closed.
Big releases like Mulan have been delayed.
Disney has already taken steps to cut costs, furloughing 120,000 employees and reducing executives' salaries.
And even as Disney Plus has seen a subscriber boost with global stay-at-home measures, the company is still spending large sums on building the service.
In the last three months, that division lost over $800 million dollars.
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