Six Flags Announces Major Layoffs Amid Restructuring

Categories: California Business NewsCalifornia News

Six Flags parks face layoffs as the company restructures operations.

News Summary

Six Flags Entertainment Corp. is implementing significant layoffs, including the presidents of two major California parks, as part of a restructuring initiative to streamline operations. Approximately 135 full-time positions will be eliminated across California by June, reflecting a broader plan to cut staff by 10% following a $220 million net loss in Q1 2025. Despite these reductions, the company plans to invest $1 billion in park improvements over the next two years as it adapts to a challenging economic landscape and competitive amusement industry.

California — Six Flags Entertainment Corp. has announced significant layoffs, including the presidents of two key California parks, as part of a major restructuring initiative aimed at streamlining operations. The company will eliminate approximately 135 full-time positions across California by the end of June, affecting multiple parks including 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.

This workforce reduction is part of a broader plan to reduce the company’s total staff by approximately 10% in the coming weeks. The need for cost-saving measures has arisen after Six Flags experienced a net loss of $220 million in the first quarter of 2025, attributed to economic uncertainties and unpredictable weather conditions impacting park operations.

The restructuring follows last year’s $8 billion merger with Cedar Fair, which positioned Six Flags as the largest amusement park operator in North America. Although the layoffs signal a challenging time for the company, it is also planning a significant investment of $1 billion in its parks over the next two years.

As part of the restructuring, individual park presidents across all 27 parks in the Six Flags chain will be eliminated under a new regional operating structure. This move aims to centralize features within the corporate framework, intending to enhance efficiency throughout its operations.

Although some park presidents may be transferred to different roles within the company, the layoffs have raised concerns among state and local tourism officials about the potential decrease in travel to California, particularly in light of ongoing trade wars and stringent immigration policies affecting international visitors.

Former Cedar Fair CEO Matt Ouimet has described these layoffs as a “parade of departures,” highlighting the potential repercussions from the merger. The strategy appears to prioritize cost reductions as Six Flags navigates a changing economic environment and a competitive amusement industry landscape.

In addition to its workforce cuts, Six Flags has revealed plans for future closures, including terminating operations for the Maryland theme park and Hurricane Harbor water park after the 2025 season. Despite these challenges, Six Flags CEO Richard Zimmerman has indicated confidence in the company’s direction, asserting that it is poised to achieve $120 million in expense reductions by the end of the year.

Following the layoff announcements, shares of Six Flags closed at $35.06, marking a nearly 3% increase, suggesting some investor optimism despite the significant operational changes. The decision to reduce the workforce while simultaneously investing heavily in park improvements illustrates the complex challenges facing Six Flags as it attempts to stabilize and grow in a fluctuating market.

As this situation continues to develop, it remains to be seen how these organizational changes will impact the overall experience at Six Flags parks, as well as the company’s competitiveness in the amusement park sector moving forward.