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Disney announces upcoming layoffs, hiring freeze to cut costs in internal memo from CEO Bob Chapek: report

Disney announces upcoming layoffs, hiring freeze to cut costs in internal memo from CEO Bob Chapek: report

The Walt Disney Company plans to Hiring Freeze It cut some jobs before the winter break after a disappointing quarter, according to one report.

In the note sent to the employees, CEO of Disney Pop Network He said the company would go ahead with prioritizing cost-saving 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 will have to make difficult and uncomfortable decisions. But that is exactly what leadership requires, and I thank you in advance for stepping up during this important time.”

In this illustrated illustration, the Walt Disney Company logo is shown on a smartphone. (Thiago Prudencio/SOPA Images/LightRocket via Getty Images/Getty Images)

“As we work through this evaluation process, we will be looking at every avenue of operations and employment to find savings, and we do anticipate some reductions in staffing as part of this review,” Chabak said in the memo sent Friday.

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The CEO also said that the company will limit the number of additional employees it has hired and that it is only focusing on acquiring new employees in “the most important positions and business leadership”.

“We are limiting headcount additions with a targeted target Hiring freeze. Recruitment will continue for a small subset of the more critical, business-oriented positions, but all other roles are on hold. Sector leaders and HR teams have more specifics on how to apply this to your teams.”

Disney has about 190,000 employees, a number that has been declining annually since 2018.

The note is the latest trading indication of how Disney plans to follow a disappointing quarter, which appeared to dampen investor sentiment. Shares of the company fell to a 52-week low on Wednesday, from $101 on Monday to just under $87. They have since rebounded to about $95 as of Friday evening.

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Chuckleak also noted in the memo that Disney will create a “cost structure task force” to further reduce the company’s expenses. It will be chaired by CEO and CFO Christine McCarthy and General Counsel Horacio Gutierrez.

The memo comes just days after McCarthy first announced Disney’s intention to make short- and long-term changes to save money.

“We are actively evaluating our cost base currently, and are looking for meaningful efficiencies,” she said. “Some of these will provide some savings in the near term, and others will generate long-term structural benefits.”

Image of the Disney + stream list

The Disney+ streaming login screen is shown on TV, Monday, August 9, 2021, in East Derry, NH Walt Disney announces quarterly financial results announcing quarterly financial results. (AP Photo/Charles Krupa/AP Newsroom)

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Disney has faced huge losses like unwavering inflation Continues to squeeze the pocketbooks of consumers. And while streaming service Disney+ continues to gain subscriptions — the company boasted gains of 12.1 million subscribers this quarter — operating losses continue to pile up. Disney reported losses of about $1.5 billion in the fourth quarter of the fiscal year.

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The company has also been embroiled in controversies, including its outspoken opposition to Florida Governor Ron DeSantis’ signing of a bill banning the teaching of sexual orientation in the classroom and allegations of extreme “wake up” by some consumers.