Disney Is Preparing To Cut Jobs.
As per a leaked memo from CNBC, Disney CEO Bob Chapek predicts "some headcount reductions." Also, the company will freeze most hiring, only bringing in new employees for "the most critical, business-driving positions."
If Disney goes through a round of layoffs, it will be far from alone among the companies powering streaming services. This year, dozens of workers have lost their jobs at HBO Max and Warner Bros Television.
Netflix also laid off hundreds of employees this year and reported slower subscriber growth, but noted during the latest earnings call that its business remains profitable, unlike its premium streaming competitors, which include Disney.
Chapek has forecast that the services will be profitable by the end of 2024. So far, there are no details on how many workers may be affected, as Disney will begin by forming a "cost structure task force" to review its finances. However, the possibility of layoffs loomed after her earnings called on Tuesday when CFO Christine McCarthy said Disney was "actively evaluating our cost base currently, and we're looking for meaningful efficiencies."
The company is also tightening its belt in other ways, with Chapek's memo telling employees to hold business meetings virtually when they can to cut travel expenses.