Disney To Stop Paying 100,000 Employees During COVID-19 Closure

Walt Disney will halt paying over 100,000 employees beginning this week as it continues to stay closed during the coronavirus pandemic.

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The Financial Times says the move will save the company $500 million a month. The company will continue to provide its workers with full healthcare benefits during this time.

Disney executive chairman Bob Iger will also be forgoing his pay, as announced by the company, last month.

“Mr. Iger has agreed to forgo, through the last payroll period in the Company’s current fiscal year, receipt of all but that portion of his base salary necessary to fund, on an after-tax basis, his contributions to continue to participate in the Company’s health benefits plan,” a filing with the Securities and Exchange Commission said in March. “He is also waiving his right to receive his car allowance payable during the same period the salary waiver is in effect.”

CEO Bob Chapek will take a 50% cut to his pay as well.

“As we navigate through these uncharted waters, we’re asking much of you and, as always, you are rising to the challenge and we appreciate your support,” Chapek said in an email to employees on March 30. “Your dedication and resilience during this difficult time are truly inspiring and it gives me renewed confidence that will we come through this crisis even stronger than before, we have so many times in our company’s history.”

[Via]