Disney in negotiations with unions to represent 43,000 employees at Walt Disney World
The company is planning mass layoffs as a result of COVID-19 shutdowns.
(Reuters) – U.S. Senator Elizabeth Warren slammed Walt Disney Co's move to lay off 28,000 workers while making shareholder payouts in the years leading up to the COVID-19 pandemic, demanding more information from company executives on the measures.
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Warren, a progressive former U.S. presidential candidate, blasted the entertainment company for the layoffs that came as Disney reportedly restored pay for some executives who had taken cuts due to the pandemic, according to a letter the Massachusetts senator sent to Disney on Tuesday and seen by Reuters.
Warren described Disney's decision to pay dividends and buy back stock before the pandemic as "short-sighted," because it reduced the capital the company could have used to weather the
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"I would like to know whether Disney's financial decisions have impacted the company's decision to lay off workers," Warren wrote. "It appears that – prior to, and during the pandemic – Disney took good care of its top executives and shareholders – and now is hanging its front-line workers out to dry."
NEWSOM SENDING TEAM TO DISNEY WORLD FOR THEME PARK REOPENING FEEDBACK
Disney did not immediately provide a comment. Warren said she appreciated that Disney has continued to provide healthcare benefits to furloughed workers for the last six months.