SWFI Daily Layoffs Briefing, April 20, 2020
Posted on 04/20/2020
Media behemoth ViacomCBS Inc. eliminated a large number of contract positions, these include freelance and project-based employees mostly in media production.
24 Hour Fitness
San Ramon, California-based 24 Hour Fitness is a gym chain. The fitness chain is dealing with a crush load of debt, while the company is under lockdown due to the coronavirus. 24 Hour Fitness hired Lazard and the law firm Weil, Gotshal & Manges to weigh options, which includes a bankruptcy. 24 Hour Fitness is owned by AEA Investors, when the investor got it through a US$ 1.8 billion deal in 2014 from sellers Fitness Capital Partners and Ontario Teachers’ Pension Plan. According to ratings agency Moody’s, the fitness chain had US$ 1.5 billion in sales and has less than US$ 1 million in cash. 24 Hour Fitness has a US$ 837 million term loan with a “springing maturity” in March 2022 and US$ 500 million in unsecured notes maturing in June 2022.
Walt Disney Company
The Walt Disney Company plans to save US$ 500 million per month by furloughing more than 100,000 employees. In the last three months of 2019, Disney generated US$ 1.4 billion in operating income for its parks, “experiences”, and products.
On another note, Disney’s streaming platform – Disney Plus – gained up around 50 million subscribers in five months since it was publicly launched.
Carta laid off 161 employees, or roughly 16% of its workforce. Carta is a startup that manages employee equity for other startups.
Los Angeles-based IPC Studio Inc. closed its jeans manufacturing plant in South Los Angeles and terminated 124 employees. IPC Studio’s clients were well-known brands, including Joes Jeans, Hudson Jeans, and Rag & Bone.
Keywords: Ontario Teachers Pension Plan.