Carnival to Lay Off Employees in Florida Due to Coronavirus (Source Zacks Equity Research)

Given an extended pause in operations due to the coronavirus pandemic, Carnival Corporation CCL has announced a series of layoffs and furloughs across its Florida offices. The company has terminated 820 positions in Florida, with an additional 537 employees, placed on temporary furlough for up to six months. Employees in California and Washington state will also be impacted by the pandemic. This along with the combination of reduced work hours and salary reductions of senior executives is likely to save millions in cash on an annual basis. Carnival President & CEO Arnold Donald stated “Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do. Unfortunately, it’s necessary, given the current low level of guest operations and to further endure this pause.” In mid-April, Royal Caribbean Cruises Ltd. RCL announced plans to terminate 26% of its workforce. Even Norwegian Cruise Line Holdings Ltd. NCLH has announced plans to furlough 20% of its staff.