After Huge Loss in Streaming Business Disney Plans to stop Hiring

Following a $1.5 billion loss in the streaming business, Disney CEO Bob Chapek sends a memo at the senior vice president level announcing a targeted hiring freeze and layoffs. 

The notice started circulating after Disney’s loss and drastic fall in the share market, with Chapek announcing the previous decision and a slash in the travel budget. Chapek stated that this cost-cutting measure was necessary for the company to continue to thrive for a long time.

The memo was first leaked by CNBC, with Chapek sympathizing about the “difficult process” but remaining firm and stating that the company has to make “tough and uncomfortable decisions.”

We are limiting headcount additions through a targeted hiring freeze. 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 also stated the appointment of a “cost structure task force” made up of Chief Financial Officer Christine McCarthy, General Counsel Horacio Gutierrez, and Chapek. The task force will choose the most cost-friendly paths in the decision-making process.

The circulated note also carries a statement prohibiting unnecessary and last-moment business trips to ensure saving up on travel expenses. The cost-cutting and layoffs are a necessary evil since the company will need to make up the profits in the streaming area after the tremendous loss this quarter.

I know this will be a difficult process for many of you and your teams. 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 critical time.

Chapek has guaranteed that this decision will carry over effects to the following year, thus making sure the company returns to profitability by 2024.

Disney hosts a wide range of shows and movies, including Marvel, Pixar, Lucasfilm, etc., along with their original network’s content. 

Source: CNBC