SeaWorld furloughs more than 90% of its employees over coronavirus pandemic

SeaWorld Entertainment is indefinitely furloughing more than 90% of its employees on April 1, the latest economic hit to Central Florida and around the country from the coronavirus pandemic.

Thousands of employees won’t get paid after March 31, the company reported in an SEC filing Friday. SeaWorld encouraged them to apply for government unemployment benefits. Employees will lose their health insurance March 31, although they are eligible to continue paying for it under COBRA.

SeaWorld Entertainment, which is based in Orlando, runs 12 theme parks across the country. At the end of 2019, the company had nearly 11,000 part-time employees and 4,300 full-time workers, according to an SEC filing last month.

This was the first time SeaWorld has furloughed employees, although it’s undergone regular rounds of layoffs for years.

A letter sent to employees Friday blamed government orders meant to slow down the coronavirus.

“Government orders prohibiting large gatherings, restricting travel, and mandating business closures have caused many companies to scale back or cease operations. They have caused significant disruption to our communities and are anticipated to do so for the foreseeable future,” the letter said.

SeaWorld did not respond to questions Friday to provide more details.

In Orange County, Mayor Jerry Demings has ordered a stay-at-home order through 11 p.m. April 9 to fight the spread of the coronavirus pandemic so hospitals and the medical community aren’t overwhelmed like in Seattle and New York City. Florida now has 2,900 cases, including 156 in Orange County, where three people have died from the virus.

It’s the latest blow for SeaWorld employees, especially for the part-timers who haven’t been getting paid since the parks closed down.

One corporate employee who will keep his job described the emotions of the day. His boss cried. He said he felt thankful to know he would go back to work but his department was hit hard and many of his friends were gone. He worried if they could pay their bills.

“We cut pretty deeply,” said the employee, who lives in Clermont, requesting to be anonymous for fear of losing his job.

Another employee who was furloughed heard the news on a conference call Friday afternoon.

“The worst part is that we only have insurance through the 31st. So on a Friday afternoon, we have to get all of our prescriptions and everything ready in the three and a half days of insurance during a global pandemic,” she said, declining to give her name for fear of retribution.

Employees were told to turn in their computer laptops but to keep their badges and uniforms for when the parks eventually reopened.

“The furlough period is uncertain at this time due to the temporary park closures and will be reassessed as business conditions dictate,” the SEC filing said. “The Company looks forward to welcoming back its ambassadors and guests when it is safe to open again.”

SeaWorld’s struggles have been well-documented after the “Blackfish” whale captivity documentary and competition with Disney and Universal, which have invested heavily into their parks. However, at SeaWorld, in recent times, attendance has rebounded and the parks opened several new rides and a Sesame Street-themed land in Orlando.

But beholden to shareholders, the company has sought to save money. Several say employee morale is low after several rounds of layoffs and benefit cuts.

About a year ago, the company laid off an undisclosed number of employees. Bigger cuts took place in 2017 and 2018 when the company eliminated 475 positions.

The company also has had a revolving door of leadership. Its previous CEO Gus Antorcha, an executive in the cruise industry, left after seven months on the job last year, citing disagreements with the company’s board.

An analyst note from Stifel described the dynamics of the company with board chairman Scott Ross.

“We are guessing Mr. Antorcha got settled into his role and quickly realized this is Scott Ross’ company. We believe every major decision has to go thru Mr. Ross,” according to the note released in September.

In November, new CEO Serge Rivera took over as the company’s chief with a salary of $600,000 annually. The company did not respond to a question if Rivera’s pay would be cut.

Staff writer Dewayne Bevil contributed to this report. grusson@orlandosentinel.com