Six Flags to Lay Off 135 Employees Amid Restructuring

News Summary

Six Flags Entertainment Corp. will lay off 135 full-time employees, including park presidents, as part of a restructuring plan to streamline operations across its California parks. This decision follows a significant financial loss of $220 million in Q1 2025 and aims to centralize park management in a new regional structure. Additionally, the company plans to reduce expenses by $120 million by the end of the year, while pursuing a $1 billion investment in its parks over the next two years. The layoffs have raised concerns in California’s tourism sector regarding market impacts.

California Layoffs at Six Flags Entertainment Corp.

Six Flags Entertainment Corp. has announced a significant restructuring initiative that will result in the layoff of 135 full-time employees, including the presidents of Knott’s Berry Farm in Buena Park and Six Flags Magic Mountain in Valencia. This decision is part of a broader strategy to streamline operations across its California parks and is set to be implemented by the end of June 2025.

The layoffs will affect other parks as well. In addition to Knott’s Berry Farm and Six Flags Magic Mountain, job cuts will also impact Six Flags Discovery Kingdom in Vallejo and California’s Great America in Santa Clara. As part of this restructuring, which will reduce the company’s total workforce by 10%, the individual park presidents across all 27 parks in the Six Flags chain will be eliminated. Instead, the company will adopt a regional operating structure, centralizing certain functions at the corporate level.

This decision follows a challenging financial period for the company, which reported a net loss of $220 million in the first quarter of 2025. Contributing factors include economic uncertainty and adverse weather conditions affecting park attendance. Following its $8 billion merger with Cedar Fair, Six Flags has become the largest amusement park operator in North America, but it is now faced with the need to cut costs significantly.

Cost-Cutting Measures

As part of its extensive cost-cutting measures, Six Flags aims to reduce expenses by $120 million by the end of the year. The layoffs are just one aspect of this plan, which also includes potential reassignment opportunities for some laid-off park executives and severance packages for eligible employees. The company’s leadership has expressed their commitment to not only manage these layoffs but also continue investing in the parks, with plans for a $1 billion investment over the next two years.

Market Reactions and Challenges Ahead

Officials in California’s tourism sector have raised alarms regarding the potential impact of these layoffs and broader market trends on travel to the state. Concerns have been heightened by ongoing trade wars and current immigration policies which may affect visitor numbers. Former Cedar Fair CEO Matt Ouimet has dubbed the layoffs a “parade of departures,” signaling potential repercussions from the recent merger and the need for strategic re-evaluation.

The company also announced upcoming plans to close the theme park and Hurricane Harbor water park in Bowie, Maryland, after the 2025 operating season, indicating that the restructuring effort could extend beyond just the California locations. Following the announcement of layoffs, shares of Six Flags closed at $35.06, reflecting a nearly 3% increase, suggesting that investors are cautiously optimistic about the company’s restructuring efforts.

Conclusion

The layoffs at Six Flags are part of a critical shift aimed at ensuring the company’s long-term viability amidst fluctuating economic conditions and performance challenges. With plans to centralize operations and invest substantially in its parks, Six Flags aims to navigate these turbulent times while reconfiguring its leadership structure for greater efficiency.

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