The Walt Disney Company confirmed it was laying off some 28,000 workers due to the effect on parks and resort operation of the sector caused by COVID-19, said Josh D'Amaro, Disney Parks Chairman.

"We have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels, having kept non-working Cast Members on furlough since April, while paying healthcare benefits.

"Approximately 28,000 domestic employees will be affected, of which about 67 per cent are part-time. We are talking with impacted employees as well as to the unions on next steps for union-represented Cast Members," the statement said.

The statement said that the decision was taken, partly because of the California authorities' reluctance to lift COVID-19 restrictions which would permit the reopening of Disneyland.

In early August, the company revealed that it lost US$4.7 billion in the third quarter of the fiscal year due to the pandemic effects.