Cineplex Is Laying Off Workers In Canada After COVID-19 Hit Hard
The take over falling through also had an effect.
More jobs lost. Even with theatres reopening, people are still out of work. Cineplex layoffs are going to be affecting workers in Canada because of the pandemic and the Cineworld take over falling through.
Cineplex confirmed to Narcity that just over 130 employees are being laid off in Canada and the U.S.
That's because COVID-19 shutdowns and Cineworld ending the agreement to take over the theatre chain had a "significant impact."
All of the jobs lost are from the company's full-time workforce and include the retirements and departures of senior executives in the coming months.
Resources have also been scaled back.
So, for the short and medium-term, the company will focus on fewer priorities and a smaller number of projects to get on the road to recovery.
Also, the impact that COVID-19 could have on the business in the months to come is still unknown.
Though Cineplex doesn't plan to let the virus or the failed take over keep them down.
The movie theatre company said that they're taking steps to keep on being one of Canada's leaders in entertainment.
"We believe that we will come out of these times stronger," said Sarah Van Lange, executive director of communications with Cineplex.
Cineplex was supposed to be bought out by U.K.-based theatre company Cineworld.
The takeover was announced back in December 2019 and was planned to be completed sometime this year.
However, Cineworld gave the Canadian companywhich alleged that parts of the agreement had been breached.
That included not operating the business as it normally would.
Cineplex denied it because the agreement excludes outbreaks of illness as a factor in that.
Cineplex also said that the U.K. company has buyer's remorse because of the pandemic.
To welcome people back to theatres again in some provinces, Cineplex is offeringof $5.
Theatres have reopened in B.C., Alberta, Saskatchewan, Quebec, New Brunswick, Nova Scotia, P.E.I. and Newfoundland.
Oneshaven't opened yet but it's in the works.