News Summary
Six Flags Entertainment Corp. is implementing a significant restructuring plan resulting in the layoffs of park presidents and approximately 135 full-time jobs in California. This decision follows a recent $8 billion merger with Cedar Fair and aims to reduce workforce expenses by 10%. Despite this, Six Flags plans to invest $1 billion in its parks over the next two years, reflecting a commitment to growth amidst challenging economic conditions and a reported net loss of $220 million in the first quarter of 2025.
California – Six Flags Entertainment Corp. is undergoing a significant restructuring initiative that has led to the layoffs of the presidents of Knott’s Berry Farm and Six Flags Magic Mountain. This restructuring will result in approximately 135 full-time job cuts across California by the end of June. The affected parks include Knott’s Berry Farm located in Buena Park, Six Flags Magic Mountain in Valencia, Six Flags Discovery Kingdom in Vallejo, and California’s Great America in Santa Clara.
As part of the company’s efforts to streamline operations, Six Flags plans to reduce its overall workforce by 10% in the coming weeks. This move follows Six Flags’ recent $8 billion merger with Cedar Fair, which has made it the largest amusement park operator in North America. The merger initially anticipated significant growth potential but has instead prompted the need for aggressive cost-cutting measures amid challenging financial circumstances.
In the first quarter of 2025, Six Flags reported a net loss of $220 million, which the company attributed to economic uncertainty and fluctuating weather conditions adversely affecting visitor numbers. In addition, state and local tourism officials have expressed concerns regarding dwindling travel to California, a trend exacerbated by the ongoing trade wars and shifting immigration policies.
The restructuring will abolish the roles of individual park presidents at all 27 parks in the Six Flags chain. This realignment is aimed at centralizing various functions and responsibilities at the corporate level. Under this new structure, some of the laid-off park presidents may be reassigned to different roles within the organization. Alternatively, eligible staff members may receive offers for part-time positions or severance packages as the company navigates this transition.
Six Flags CEO Richard Zimmerman has stated that the company is on track to reduce its overall expenses by $120 million by the end of this year. Despite the layoffs, Six Flags has also announced plans to invest $1 billion into its parks over the next two years, demonstrating a commitment to future growth and improvement.
This series of job cuts follows previous announcements regarding the closure of both the theme park and Hurricane Harbor water park in Bowie, Maryland, after the 2025 operating season. The recent layoffs and closures reflect the broader challenges and changes occurring within the amusement park industry as it adapts to evolving economic realities.
Following the announcement of these layoffs, shares of Six Flags saw a nearly 3% increase, closing at $35.06. The stock market’s reaction indicates a level of investor confidence in the company’s efforts to stabilize and streamline operations, despite the immediate impact on employees and park management.
As the amusement park landscape shifts, industry observers will be closely watching how the new structure and planned investments will affect Six Flags’ ability to attract visitors in the face of increasing competition and changing economic conditions.
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