According to a rumor, The Walt Disney Company intends to stop any further recruitment for the time being and may even reduce the number of positions it has open in the wake of a less-than-stellar fiscal quarter.
Bob Chapek, the CEO of Disney, announced in a memo that was distributed to employees that the business will be going through with priority cost-saving initiatives including “certain workforce layoffs.”
In his email, Chapek said, “I am well aware that this is going to be a tough journey for many of you and your teams.” “We are going to be confronted with some difficult and unsettling choices, and we will need to make them. However, that is exactly what is required of leaders, and I want to thank you in advance for taking charge at this crucial period of time.”
“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,” Chapek said in the memo that was sent on Friday. “We will look at every avenue of operations and labor to find savings.”
The chief executive officer also stated that the company would place a cap on the number of additional staff members it hired and that its primary focus was on recruiting new employees just for the “most important, revenue-driving positions.”
“We are putting a freeze on targeted hiring in order to reduce the number of new staff members we add. The hiring process will go forward for a select group of the most important and influential roles in the company, while all other positions are currently on pause. Your teams’ segment leaders and HR teams have more particular specifics on how this will relate to your teams, and they can provide those details to you.”
Around 190,000 people are employed by Walt Disney, a number that has decreased on an annual basis since 2018.
The letter is the most recent business indicator of how Disney plans to follow up on a dismal quarter, which appeared to demoralize investors. It is also the newest business indicator of how Disney plans to move forward. The price of the company’s stock dropped from $101 on Monday to just under $87 on Wednesday, marking a new low point for the past 52 weeks. Since then, they have made a strong comeback and are currently trading at around $95 as of Friday evening.
Chapek also mentioned in the message that Disney is going to establish “a cost structure taskforce” in order to reduce the company’s expenditures in further ways. It will be overseen by the Chief Executive Officer, Christine McCarthy, who serves as Chief Financial Officer, and Horacio Gutierrez, who serves as General Counsel.
The memo was sent just a few days after McCarthy made the first announcement that Walt Disney planned to make both short-term and long-term adjustments in order to cut costs.
She stated that “we are aggressively assessing our cost base at this time, and we are looking for real efficiencies.” Some of these are going to result in cost reductions in the short term, while others are going to create longer-term structural benefits.
Disney has suffered significant losses as a result of the unstoppable inflation that continues to put pressure on the finances of customers. And despite the fact that the Disney+ streaming service is continuously adding new subscribers (the business bragged of a 12.1 million subscriber-gain during the most recent quarter), the company’s operating losses keep piling up. During the company’s fiscal fourth quarter, Disney recorded losses of approximately $1.5 billion.
The company has also been involved in a number of issues, such as its outspoken opposition to the passage of a bill by Florida Governor Ron DeSantis that prohibits the teaching of sexual orientation in classrooms and charges that it is too “woke” for some of its customers.
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