Six Flags theme park bustling with visitors amidst major restructuring announcements.
Six Flags Entertainment Corp. has revealed plans to lay off approximately 135 full-time employees across its California parks, including Knott’s Berry Farm and Six Flags Magic Mountain. This move is part of a wider restructuring aiming to cut around 10% of the workforce. The layoffs come in the wake of an $8 billion merger with Cedar Fair, resulting in a $220 million net loss in Q1 2025. Despite these reductions, Six Flags plans to invest $1 billion in its parks over the next two years.
The parks impacted by this restructuring include Knott’s Berry Farm in Buena Park, Six Flags Magic Mountain in Valencia, Six Flags Discovery Kingdom in Vallejo, and California’s Great America in Santa Clara. In total, Six Flags aims to reduce its workforce by around 10% during the upcoming weeks. This decision comes on the heels of an $8 billion merger between Six Flags and Cedar Fair, which has now made Six Flags the largest amusement park operator in North America. However, the merger has prompted economic challenges, with Six Flags reporting a net loss of $220 million in the first quarter of 2025, attributed to ongoing economic uncertainties and variability in weather.
Tourism officials at both state and local levels have expressed concerns regarding the potential decrease in travel to California, an outcome that could be driven by existing trade wars and various immigration policies. Former Cedar Fair CEO Matt Ouimet described the recent layoffs as a “parade of departures,” warning of the likely repercussions from the recent merger. Under the new regional operating structure, the individual park presidents at all 27 parks within the Six Flags chain will be eliminated, centralizing several functions and responsibilities at the corporate level.
While some laid-off park presidents may be offered alternative positions within Six Flags, it has been indicated that eligible staff could receive offers for part-time roles or severance packages. In response to the layoffs, Six Flags CEO Richard Zimmerman stated that the company is on course to realize $120 million in reduced expenses by the end of the year. Despite these cuts, Six Flags has announced ambitious plans to invest $1 billion in its parks over the next two years.
The cutbacks in California parks follow earlier announcements regarding the closure of the theme park and Hurricane Harbor water park in Bowie, MD, which are set to shut down after the 2025 operating season. In the aftermath of the layoff news, shares of Six Flags closed at $35.06, reflecting a nearly 3% increase.
The restructuring and layoffs by Six Flags are part of a broader trend affecting the amusement park industry, as operators respond to a rapidly changing economic landscape and evolving visitor expectations. The company aims to streamline operations while continuing to enhance the customer experience through significant investments in parks.
As these changes unfold, the impact on park staff, the local employment market, and visitor engagement with Six Flags parks remains to be seen. With a focus on reducing expenses and centralizing operations, Six Flags is positioning itself to navigate the current challenges while looking toward future growth opportunities.
This pivotal moment for Six Flags highlights the delicate balance between maintaining operational efficiency and supporting the workforce that drives visitor satisfaction at amusement parks. As the company moves forward, the consequences of these layoffs are likely to resonate throughout the broader community and the extensive network of the amusement park industry.
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