Hong Kong Disneyland is cutting jobs after the company reported its first loss in four years, local media reported Friday. Business at the entertainment park suffered this year due to political unrest coupled with a weaker economic outlook from mainland China.
Friday’s move would mark the first time Disneyland has laid off employees on a large scale since it opened in 2005. The layoffs followed the sudden departure of its long-time managing director Andrew Kam last month.
The company also recorded a net loss of 148 million Hong Kong dollars ($19.08) for the fiscal year ended Oct. 3, 2015.
“It is important for the company to maintain a solid foundation for sustainable, long-term growth,” Disney said in a statement, adding: “We regularly make operational adjustments to ensure we deliver great guest and cast experiences in the most efficient way possible, in order to pave the way for future development.”
The Hong Kong government holds about 53 percent stake in the park, which employs more than 5,300 full-time and 2,500 part-time staff and contributes about 0.42 percent of the city’s overall GDP.