In this photo illustration a close-up of a hand holding a TV remote control seen displayed in front of the Disney+ logo.
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Disney plans to institute a targeted hiring freeze as well as some job cuts, according to an internal memo sent to executives.
“We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo to division leads sent Friday and obtained by CNBC. “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 moves come after Disney reported disappointing quarterly results. Shares of the company fell sharply Wednesday, hitting a new 52-week low, before rebounding later in the week.
Chief Financial Officer Christine McCarthy said during Disney’s earnings call Tuesday that the company was looking for ways to trim costs.
“We are actively evaluating our cost base currently, and we’re looking for meaningful efficiencies,” she said. “Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits.”
Disney’s streaming services lost $1.47 billion last quarter, more than double the unit’s loss from a year prior. McCarthy said losses will improve in 2023, and Chapek has promised streaming will become profitable by the end of 2024.
Other large media and entertainment companies, including Warner Bros. Discovery and Netflix, have cut jobs this year as valuations have slumped. Disney hasn’t announced any plans to eliminate jobs.
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Source link: https://www.cnbc.com/2022/11/11/disney-plans-hiring-freeze-job-cuts-memo-says.html