Bob Iger is overpaid

Disney stops payments to around 100,000 employees

Disney is suffering extremely from the corona crisis. To keep the financial losses of the world's largest entertainment company as low as possible, over 100,000 Disney employees will no longer receive payments.

When most of us hear Disney, we immediately think of blockbusters from the Star Wars or Marvel universes, the classic animated films or the recently launched streaming service Disney +. But did you know that Disney generated around half of its revenue last year (about $ 11.4 billion) with its theme parks in the US, Europe and Japan? And as you can imagine, these have been closed for around 5 weeks due to the Covid19 outbreak. Disney is one of the largest employers in the Orlando-Florida area. 70,000 people alone work in various amusement parks, including what is probably the most famous theme park, “Walt Disney World Resort”.

Disney workers in the US are hit hardest

Difficult times are now breaking for the employees. Because Disney has stopped making payments to the workforce. Unfortunately, Disney's bonus payments are not enough to reward employees accordingly. So most of them are probably dependent on support from the state. However, this “unemployment benefit” runs for a maximum of 12 weeks and is just $ 275 US. This is the lowest unemployment benefit rate in the United States (depending on the state). The around 17,000 employees in Disneyland Paris are much better protected. In a kind of “short-time work”, those affected are still paid 84 percent of their net salary.

Disney CEOs make millions

Disney is only taking these steps, of course, to keep the fixed costs for the entertainment parks as low as possible. These measures are expected to save the company around $ 500 million per month. By the way, the former CEO Bob Iger (currently holding the scepter again) earned around 65.5 million US dollars in 2018, and 47 million US dollars in his exit year 2019. The average annual salary for a Disney employee, on the other hand, is only $ 52,000. New CEO Bob Chapek is slated to receive at least a $ 15 million bonus this year.