The Walt Disney Company, in a move to cut costs, plans to begin layoffs, implement a targeted hiring freeze and limit corporate travel.
As Variety reported, Disney CEO Bob Chapek sent an internal memo to the company’s top executives on Friday, Nov. 11, saying the coming weeks are going to be tough.
“I am fully aware that this will be a difficult process for many of you and your teams,” Chapek said. “We are going to have to make some tough and uncomfortable decisions. But that is exactly what leadership requires, and I thank you in advance for stepping in during this important time. Our company has overcome many challenges over our 100 years of history, and I have no doubt that we will achieve our goals and create a company that is more agile and better adapted to the environment of tomorrow.
During this process, Disney will also conduct a “rigorous review of the company’s content and marketing expenditures.” That review will be led by the new “cost structure task force,” a group that includes Chapek, chief financial officer Christina McCarthy and general counsel Horacio Gutierrez.
The moves follow Disney’s quarterly results that resulted in an operating loss for its streaming division of $1.47 billion. While revenue rose 8% to $4.9 billion, it also saw a 5% decline for Disney’s linear TV networks in the quarter. Disney also recently saw the company’s shares fall 13.16%, marking the smallest drop in two years.
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On the bright side, Disney+ beat Wall Street projections and hit 164.2 million subscribers and it expects the streaming service to “hit profitability in fiscal year 2024.”
It looks like many big companies are going through different cost-cutting measures, as this news follows similar layoffs at Twitter, Meta, and Microsoft.
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Adam Bankhurst is a reporter for IGN. You can follow him on Twitter @AdamBankhurst and on Tic.