In a sign that the recession is cutting into Walt Disney Co.'s parks and resorts business, the company said Friday that it eliminated about 1,900 jobs at its domestic theme parks.
The bulk of the cuts occurred at Walt Disney World in Orlando, Fla., where about 1,400 jobs were eliminated. About 300 jobs will be cut from the Disneyland Resort in Anaheim, with the remainder coming from corporate headquarters in Burbank.
Disney, which employs about 80,000 people in its parks and resorts unit, said 1,200 people were laid off and about 700 positions were left unfilled.
The entertainment giant set the stage for the job reductions in February, when it announced a reorganization of its parks and resorts operation. The company didn't say at the time how many positions would be eliminated.
The cuts signal that Disney is bracing for an extended downturn as consumers continue to keep their wallets closed.
"The recession, and the recent decline, has really hit the theme park industry, but it has hit the destination parks more than the regional parks," said Edward Shaw, an associate with Economics Research Associates, a consultant to the travel industry. "People are staying closer to home."
Other Southern California amusement parks say they have avoided major layoffs.
Six Flags Magic Mountain, Legoland and Knott's Berry Farm say they have had no job cuts in recent months, and Universal Studios spokesman Eliot Sekuler said the company laid off a few dozen workers at the theme park in December as part of an overall belt-tightening at NBC Universal. There are no plans for further layoffs, he said.
Travel experts say the vacation industry is reeling from the effects of the weak economy. Consumers are worried about job security as the nation's jobless rate reached its highest level in more than a quarter century. Businesses also are curtailing trips.
All of these things are taking a toll on hotel bookings and air travel -- two bellwethers of the health of the travel business.
"The downturn that has occurred in the hotel industry since September is much worse than anybody anticipated," said Bruce Baltin, senior vice president of PKF Consulting, a hospitality industry consulting firm in Los Angeles. "We'll come out of this downturn as we have all others, but it may not be until 2010."
