“As you are nicely mindful, this unprecedented crisis has experienced a devastating effect on businesses nationwide, and organizations huge and little have experienced to choose the tricky actions necessary to weather conditions the impression,” he added.
Warren responded in a assertion on Wednesday: “Disney will not likely reply my questions mainly because it has no great answers. The corporation mentioned it was merely unfeasible to retain paying out staff but had no explanation for how it was feasible to restore senior executive spend.”
Disney did not right away respond to a ask for for comment about Warren’s assertion.
Warren additional on Wednesday: “Disney used its crisis fund by handing out billions of bucks to its leading rich executives and shareholders in inventory buybacks and dividends,” but after the pandemic strike its business, it “left 1000’s of personnel holding the bag.”
In his letter, Chapek famous Disney closed its domestic parks in March but ongoing to spend staff members for “nicely in excess of a thirty day period.”
“As the pandemic persisted, we experienced to make the complicated decision to furlough personnel whilst continuing to shell out the entire cost of their wellbeing protection,” Chapek ongoing. “More than six months after closing our domestic parks, with the result of the pandemic even now very unsure, we experienced no selection to lay off a selection of non-functioning personnel.”
Chapek added that Disney’s money selections about the past couple decades are “wholly unrelated to the will need to lay off staff.”
“As we have stated, specified the ongoing uncertainties of this pandemic, which includes limits on capability to advertise social distancing, and the Condition of California’s refusal to allow a risk-free reopening any time shortly, it however is not possible to pay non-working staff members indefinitely.”
CNN Business’ Matt Egan contributed to this report.