Cinemark lays off 17,500 hourly workers, drastically cuts pay for remaining employees
Plano-based Cinemark is laying off thousands of hourly employees, furloughing half its corporate team at substantially reduced salaries, cutting pay for its remaining workers and suspending its dividend payment to shareholders to keep the company solvent while its movie theaters are closed.
The company disclosed the cash-saving steps in a regulatory filing Monday. It shut down its theaters on March 18 as a result of social distancing and lockdown orders.
Cinemark characterized its financial position as “strong” entering the pandemic, with $479.4 million in cash on March 31. The dividend suspension will save another $42 million a quarter.
“Even if our theatres remained closed for the remainder of the year, Cinemark USA believes that it has sufficient cash to sustain its operations for the remainder of the year,” according to the filing.
The chain operates 554 theaters in 42 states and 15 countries.
Read more: https://www.dallasnews.com/business/local-companies/2020/04/13/cinemark-lays-off-17500-hourly-workers-drastically-cuts-pay-for-remaining-employees/
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