Please ensure Javascript is enabled for purposes of website accessibility

On April 1, SeaWorld Will Furlough 90% of Employees Indefinitely

By Rhian Hunt - Mar 30, 2020 at 8:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Furloughed employees will receive no pay but can apply for unemployment benefits.

Theme park company SeaWorld Entertainment (SEAS 3.75%), famous for its dolphin and orca displays, announced that it means to furlough 90% of its employees on April 1 for an indefinite period. The furlough comes after SeaWorld closed all of its parks in response to the rapid spread of COVID-19 in the U.S. during March. After getting a last few days of pay, the workers will receive no wages or salaries for the duration of the shutdown.

The news came on Friday, March 27, in a current report filed with the Securities and Exchange Commission (SEC). The furlough affects a workforce consisting of 12,000 part-time workers and 4,700 full-timers. SeaWorld noted that these workers are eligible to apply for unemployment benefits while awaiting the parks' reopening.

Dolphins performing at SeaWorld Orlando.

Image source: SeaWorld Entertainment.

J.P. Morgan analysis indicates the theme park closures could cost SeaWorld approximately $233 million in revenue this year. Estimates put the reduction in traffic at the parks due to the coronavirus at 3 million people, lowering total attendance to 19.6 million from a potential 22.6 million, according to the research note.

SeaWorld's measures to honor tickets and reservations disrupted by the park closures include extending domestic single-day ticket viability to Dec. 31 of this year. Date-specific "in-park experiences" and other types of reservations will be eligible for rescheduling for any date before the end of the year with zero change fees, subject to availability.

The few employees not furloughed include those who care for the parks' animals, an unavoidable fixed cost that needs to be continued throughout the closure period.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SeaWorld Entertainment, Inc. Stock Quote
SeaWorld Entertainment, Inc.
$54.83 (3.75%) $1.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.