The Walt Disney Co. plans to freeze hiring and cut some jobs ahead of winter vacation after a disappointing quarter, according to a report.
In the memo sent to employees, Disney CEO Bob Chapek said the company was moving forward with prioritizing cost-cutting measures, including “some staff reductions.”
“I am fully aware that this will be a difficult process for many of you and your teams,” Chapek wrote. “We’re going to have to make some tough and uncomfortable decisions. But that’s exactly what leadership demands, and thank you in advance for stepping in during this important time.”
“If we follow this evaluation process, we will review all operations and workforce opportunities to find cost savings, and we anticipate staff reductions as part of this review,” Chapek said in the statement. note sent on Friday.
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The chief executive also said the company will limit the number of additional employees it hires and is only focusing on acquiring new employees in the “most critical and important positions for the business”. .
“We are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most business critical and important positions will continue, but all other roles are on hold. segment leaders and your HR teams have more specific details on how this will apply to your teams.”
Disney has around 190,000 employees, a number that has been declining every year since 2018.
The memo is the latest business indicator of how Disney plans to follow up on a disappointing quarter that appeared to demoralize investors. Shares of the company fell to a 52-week low on Wednesday, falling from $101 on Monday to just under $87. They have since rebounded to around $95 on Friday night.
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Chapek also said in the memo that Disney will establish “a cost structure task force” to further reduce company expenses. It will be led by CEO, Chief Financial Officer Christine McCarthy and General Counsel Horacio Gutierrez.
The memo comes just days after McCarthy first announced Disney’s plans to make short-term and long-term changes to save money.
“We are actively evaluating our cost base right now and looking for significant efficiencies,” she said. “Some of them will provide short-term cost savings, and others will generate longer-term structural benefits.”
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Disney suffered sizable losses as relentless inflation continues to weigh on consumers’ wallets. And, as the Disney+ streaming service continues to win subscriptions — the company boasted a gain of 12.1 million subscribers this quarter — operating losses continue to pile up. Disney posted losses of about $1.5 billion in its fourth fiscal quarter.
The company has also been embroiled in controversies, including its outspoken opposition to the Florida government. Ron DeSantis signing a bill that prevents the teaching of sexual orientation in classrooms and claims to be too “woke” for some consumers.