Six Flags Entertainment Corp. is cutting 10% of its full-time workforce in a bid to “become a stronger and more profitable company” after the COVID-19 pandemic decimated the leisure industry.
The Arlington-based theme and waterpark company disclosed it’s eliminating 240 jobs in a regulatory filing after Tuesday’s trading markets closed. In a statement, the company described the decision as “difficult but necessary.”
“This workforce reduction is across salaried and hourly positions, and is part of a larger transformation plan to reinvigorate long-term revenue and profit growth in order to create shareholder value,” said the statement e-mailed by Six Flags vice president of communications Sandra Daniels.
“Our team members are our most important asset; however, it is critical that we take actions now that will allow the Six Flags organization to become a stronger and more profitable company after the crisis.”
Six Flags’ second-quarter revenue plummeted from $477.2 million a year ago to $19.1 million this year.
Since March, when the pandemic forced Six Flags to suspend operations at its parks, the company said it kept most employees on its payroll with benefits so they could “support themselves and their families.”
Displaced workers will be paid severance and provided outplacement services, according to the company. In its regulatory filing, Six Flags said it expects to book severance costs totaling $4.5 million.
Six Flags reports its third-quarter financial results Oct. 28. It’s one of the largest regional theme park and waterpark operators in the world, with 26 parks in the U.S., Mexico and Canada.
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