Six Flags Fires Presidents After $8B Merger! Layoffs Next?

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The financial impacts of the $8 billion merger between Six Flags and Cedar Fair have now made their way to Southern California, resulting in the departures of the long-standing leaders at Knott’s Berry Farm and Six Flags Magic Mountain. This significant shift in leadership is part of a broader restructuring strategy affecting the 27 amusement parks under the company.

In the context of a comprehensive restructuring following the unification of the entertainment conglomerate known as Six Flags Cedar Fair, Jon Storbeck, former president of Knott’s, and Jeff Harris, ex-president of Magic Mountain, have been let go. Their tenure will continue until the end of May, however, positions equivalent to theirs will not be filled.

As per Six Flags’ announcement, they have done away with the positions of individual park presidents, instead choosing to concentrate executive decisions at the corporate level under their new, regionally structured operational system.

Six Flags announced that under this new structure, they are managing certain tasks and duties at their corporate headquarters. Additionally, they’ve adjusted the roles and duties of park managers to emphasize operational excellence, customer service, and employee relations.

10% of the company’s full-time workforce is set to be reduced, impacting 135 positions spread across four California parks – Knott’s Berry Farm, Magic Mountain, Discovery Kingdom, and California’s Great America. The company has stated that eligible employees will either be given part-time roles or provided with severance packages.

A Major Shake-Up for Two Theme Park Veterans

In 2016, Jon Storbeck switched from a 3-decade tenure at The Walt Disney Company to join Knott’s Berry Farm. Starting as an employee on rides at Disneyland, he eventually climbed up the ladder and became vice president of Downtown Disney and the Disneyland Resort Hotels. In 2020, the Orange County Register honored him as one of the region’s key influencers, mainly because of his leadership that turned Knott’s into a significant food festival hub amidst lockdown restrictions.

Jeff Harris, however, took on the position of Magic Mountain president in 2023, but he had already accumulated three decades worth of experience with Six Flags prior to this. Starting his career at Magic Mountain as a cashier in food services, his journey progressed through various financial roles, including a significant portion spent at Six Flags Over Georgia.

Industry Reaction: “This Die Was Cast”

In a post on LinkedIn, the former CEO of Cedar Fair, Matt Ouimet (who also previously managed Disneyland), explained that the recent layoffs were not due to poor performance, but rather the necessary expense reductions that often occur during mergers of such scale.

In simpler terms, Ouimet wrote that the decision (or dice roll) was finalized once the merger contract was sealed, not due to any poor performance on the company’s part or from its people. Instead, it’s simply a matter of numbers and calculations.

In July 2024, before the completion of the merger, Ouimet confessed that his decision to retire was partly due to wanting to abstain from voting on a merger he felt would lead to the departure of skilled executives.

He stated that some top performers in the field are venturing into uncharted territories, but they’re doing so according to a schedule not decided by themselves.

What Comes Next?

The restructuring is anticipated to conclude by the end of June, however, industry experts such as Lance Hart from Screamscape predict that the impact will persist across the entire chain. With consolidation in the corporate world often results in less independence at the park level and a greater emphasis on cost efficiencies – an approach that shareholders might appreciate, but visitors and staff could have very different experiences with it.

Currently, it’s uncertain if the company’s decision to dismiss Six Flags presidents and more leadership positions will influence park operations or ongoing expansion projects. However, significant funds continue to be invested in these properties, such as the refurbishment of a water park at Magic Mountain.

Nevertheless, the departure of esteemed leadership from two renowned California parks signifies the conclusion of an era, ushering in a new chapter characterized by the Six Flags Cedar Fair merger, which promises a distinctly altered future.

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2025-05-25 17:55