Walt Disney Co. posted poor quarterly earnings, and the company's shares have dropped significantly in recent months.
Walt Disney Co., a production and streaming corporation, reportedly plans to eliminate some positions following internal reviews. According to a leaked internal memo, Disney CEO Bob Chapek intends to halt hiring and eliminate some positions in light of the underwhelming quarterly performance. There are about 190,000 people working for Disney.
“We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams."
The memo further added, “As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review.”
After reporting a $1.5 billion quarterly loss in its streaming business, the firm is making this move in an effort to turn the service profitable. After the company's report on Wednesday, its shares dropped more than 13%.
Concern over Disney's rising streaming fees was expressed by Wall Street analysts. Analyst Michael Nathanson observed in a note this week that “the company has to prove that their pivot to DTC will be worth the investment price that is currently being paid."
Many businesses worldwide are making job layoffs to prepare for the economic slump. This week, Meta Platforms said that it would reduce costs by 13% by eliminating more than 11,000 jobs. Following Elon Musk's appointment as CEO of Tesla, Twitter announced significant (about 50%) layoffs. Around the world, Twitter has reduced its employment by 50%, including over 90% of its employees in India.
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