Six Flags Announces Major Layoffs in California Restructuring

Categories: California Business NewsCalifornia News

Families enjoying fun rides at Six Flags amusement park, representing the joy of theme parks.

News Summary

Six Flags Entertainment Corp. has announced a significant reduction of its workforce, leading to 135 layoffs as part of a restructuring initiative. This move, affecting key parks in California, aims to centralize operations and reduce costs following a challenging financial climate. Despite the cuts, the company plans a $1 billion investment to enhance visitor experiences. As Six Flags adapts to market pressures after a recent merger, the focus will be on maintaining its leadership in the amusement park industry.

California – Six Flags Entertainment Corp. has announced significant layoffs, with the presidents of Knott’s Berry Farm and Six Flags Magic Mountain among the 135 full-time job cuts that are set to occur by the end of June. This move is part of a broader restructuring initiative aimed at streamlining operations across several California parks.

The affected parks 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. The company is planning to reduce its workforce by approximately 10% as part of these cost-saving efforts. Individual park presidents from all 27 parks within the Six Flags chain will be eliminated, transforming the leadership structure into a regional operating format.

These layoffs come on the heels of an $8 billion merger with Cedar Fair, which has positioned Six Flags as the largest amusement park operator in North America. Despite this large-scale consolidation, the company faced a challenging financial landscape, reporting a net loss of $220 million in the first quarter of 2025. Factors contributing to these losses include economic uncertainty and unpredictable weather patterns, which have adversely impacted visitor numbers.

Furthermore, local tourism officials have voiced concerns about a potential decline in travel to California. This apprehension stems from ongoing trade tensions and immigration policies that may deter visitors. The former CEO of Cedar Fair highlighted the restructuring’s implications, labeling the layoffs a “parade of departures.”

To manage costs, Six Flags plans to centralize certain operational functions at its corporate headquarters. Some of those impacted by the layoffs can expect potential reassignment to different roles within the organization. Additionally, eligible employees may be offered part-time positions or severance packages, providing support during this transition.

Despite the layoffs, Six Flags remains committed to investing in its parks, announcing plans for a $1 billion investment over the next two years. This investment aims to enhance the visitor experience and rejuvenate park offerings, even in light of the recent job cuts.

The layoffs follow previous announcements about the upcoming closure of the theme park and Hurricane Harbor water park in Bowie, Maryland, which is set to cease operations after the 2025 season. The company is also focused on achieving lowered expenses amounting to $120 million by the end of the year, in alignment with its ongoing restructuring strategy.

Following the announcement of these layoffs, shares of Six Flags experienced an almost 3% increase, closing at $35.06, signaling investor optimism regarding the company’s future profitability amidst a broader operational transformation.

As Six Flags implements these changes, it will be crucial for the company to adapt effectively to maintain its leadership position in the amusement park industry while navigating financial challenges and external market pressures. The upcoming months will shed light on the success of these restructuring efforts and the potential for recovery in park attendance and revenue generation.