SeaWorld eliminates hundreds of jobs
SeaWorld Entertainment Inc. announced Tuesday that it is eliminating 320 jobs, part of an ongoing effort to sharply cut its costs.
In Southern California, about 60 employees will be laid off, according to a notice filed Tuesday with the California Employment Development Department.
The affected positions in San Diego include park operations and merchandise supervisors, senior trainers and animal care specialists. The breakdown is contained within what is known as a federal WARN notice that must be filed by California businesses that eliminate 50 or more employees within a 30-day period.
The announcement comes two years after the Orlando, Fla.-based company announced its last round of layoffs, which affected more than 300 employees. At that time, more than 100 San Diego workers were affected.
SeaWorld would not break down the current job cuts by location, but it said they would affect the company’s 12-park operation and its headquarters.
In an emailed statement, SeaWorld said the layoffs are part of a restructuring program “focused on reducing costs, increasing efficiencies, reducing duplication of functions and improving the company’s operations through proven benchmarks. These changes are being made to best position our company for long-term success, and so that we can continue to do great things for animals across the globe.”
A company spokeswoman said the cuts would be a combination of layoffs and vacant positions.
Currently, there are 2,750 workers employed at SeaWorld San Diego, although during the park’s peak summer season, the number of employees can be as high as 4,200.
SeaWorld San Diego Park President Marilyn Hannes said the workers being laid off would remain on the payroll through Feb. 4.
The company is still struggling to right itself amid a slump in attendance and declining revenue. In August, SeaWorld said it would suspend future dividends as part of an effort to divert funds to developing more attendance-boosting attractions.
Three months later, during its third-quarter earnings report, SeaWorld said it would move to cut costs sharply, but it did not mention the possibility of layoffs. It did, however, say it was putting in place a “cost optimization program” that would result in a net savings of $40 million through 2018.
“We remain committed to a continued focus on the guest experience, the health and welfare of our animals, and the safety of our guests and team members,” SeaWorld said Tuesday. “It is an unfortunate, but necessary, consequence of the restructuring that some positions will be lost. For those employees, we are offering enhanced severance benefits and outplacement assistance to help with their transition.”
It’s not surprising that SeaWorld is having to cut more jobs as it works on what will be a long-term plan to revive the company, amusement park consultant Dennis Speigel said. In the theme park industry, labor can account for as much as half of the operating costs, he said.
“Difficult situations require difficult decisions, and SeaWorld is making the kind of moves to save money that are typically done when you’re facing problems like this,” said Speigel, president of Cincinnati-based International Theme Park Services. “This is not an easy fix. I’ve said before this is a minimum 10-year salvage effort, and that’s still my belief.”
SeaWorld’s marine parks are undergoing significant change as they move to phase out the long-running Shamu show and replace it with a new orca encounter showcasing the killer whales’ natural behaviors. Earlier this year, SeaWorld announced it would end the breeding of its orca population, a move fueled by harsh criticism after the 2013 release of the “Blackfish” documentary that focused on the parks’ treatment of its orcas.
The company’s stock rose 0.5% to $18.21 on Tuesday.
