Walt Disney Co. said it would lay off about 28,000 employees at its domestic theme parks, making the announcement shortly after the state of California signaled that Disneyland Resort would likely have to remain closed for the foreseeable future due to Covid-19 concerns.

The layoffs are the latest example of ongoing tension between governments trying to keep the new coronavirus in check and businesses struggling to make ends meet amid restrictions on the way they can operate.

The…

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