Image via Disney
Following along with other major companies like Meta, Disney is now going to begin layoffs, targeted hiring freezes, and more.
Disney CEO Bob Chapek sent out an internal memo to top executives at the company on Friday, November 11 saying that the coming weeks would be difficult.
“I am fully aware this will be a difficult process for many of you and your teams,” Chapek said. “We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.”
Disney will be performing a “rigorous review of the company’s content and marketing spending.” The review will be led by the “cost structure taskforce,” a newly formed group that includes Chapek, CFO Christina McCarthy and general counsel Horacio Gutierrez.
Disney’s quarterly earnings revealed an operating loss for its streaming division of $1.47 billion. Revenue increased to $4.9 billion (8%), but the company did see a 5% drop for its linear television networks. Disney shares fell to 13.16%, the lowest in two years.
Still, Disney did outperform Wall Street projections and reached 164.2 million subscribers. Disney is currently expected its streaming service to “achieve profitability in fiscal 2024.”
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