By Jill McLaughlin
The Walt Disney Co. appears to be the latest corporation to scale back hiring and spending as the economy cools.
The entertainment giant reportedly announced the changes to senior staff this week after a disappointing quarterly report released Nov. 8 sent stocks plunging to a 21-year low.
An internal memo obtained by CNBC Nov. 11 detailed plans by Disney’s CEO Bob Chapek to institute a hiring freeze, cut jobs, and reduce executive expenses.
“We are limiting headcount additions through a targeted hiring freeze,” Chapek wrote to division leads, according to CNBC. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold.”
The Epoch Times could not immediately verify the memo as Disney representatives did not return a request for comment by press deadline.
In the reported memo, Chapek also said the company would “look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of the review.”
He also apparently told his executive staff that business travel should be limited to essential trips and meetings should be conducted virtually as much as possible.
“I am fully aware this will be a difficult process for many of you and your teams,” the chief executive wrote, according to the report. “We are going to have to make tough and uncomfortable decisions.”
The cuts are expected to help the company realize profits for its streaming service Disney+ in 2024 and make the company “more efficient and nimble,” the memo said.
The family entertainment giant released a dismal earnings report Nov. 8 showing decreased advertising sales and added costs for streaming programming. Losses in its video streaming services Disney+ and Hulu added to the drop.
Disney has losses more than doubled to $1.47 million from July to September in the company’s direct-to-consumer division, Disney reported.
The company’s shares fell 13 percent following results of the quarterly report, representing the biggest one-day drop since September 2001, Bloomberg reported.
A reduction in advertising sales also contributed to the downturn, the company reported.
Netflix, Twitter, and Facebook’s parent company Meta are among many companies to also announce job cuts this year.