United States Senator Elizabeth Warren (D-Mass.) has sent a letter to The Walt Disney Company to obtain information on the company's announced layoffs of 28,000 workers and what Warren views as a prioritization of stock buybacks, dividend payments, and high executive pay.
In the letter to Disney, she says, "In the years leading up to this crisis, your company prioritized the enrichment of executives and stockholders through hefty compensation packages, and billions of dollars' worth of dividend payments and stock buybacks, all of which weakened Disney's financial cushion and ability to retain and pay its front-line workers amid the pandemic." "I would like to know whether Disney's financial practices have impacted the company's decision to lay off workers and whether your company plans to extend health care or other critical benefits and protections to laid off employees." She goes on to say, "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."
You can view the full text of the letter from Senator Warren here.
As part of the 28000 workers at the domestic theme parks who are being separated from the company, more than 20000 of them are at Walt Disney World. Among the layoffs are Cast Members with decades of service to the company. This week is seeing the dismantling of the vast majority of the Walt Disney World entertainment department.
Senator Warren has given the company until October 27 2020 for answers to her 7 questions.
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