The Walt Disney Company has suffered tremendous loss in revenue over the past year, mostly due to the coronavirus pandemic. This has forced the theme parks to close for over three months. Although they have now reopened, they have opened at a reduced capacity which leads to reduced income. Operating expenses have increased by over three million dollars from 2019 to 2020 but the net income has reduced by over 10 million dollars. Due to this, the proposal is to analyze patterns during the week to reduce operating expenses as well as reduce labor costs.
Although reducing labor is a challenge and risk, it could bring the company to a place where the income and expenses can balance out and save the company from too much loss. The goal is to balance out the cash flow so that when the pandemic is over, potentially this decision could be beneficial for the company in the long run.
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