Disney Ends The Fairytales By Announcing Major Cost Cuts and Layoffs Disney shared in an internal memo their plans on cost cuts, layoff and freezing new hires. CEO Bob Chapek in the memo to division heads said, "We are limiting headcount additions through a targeted hiring freeze."
By Kavya Pillai •
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Disney shared in an internal memo their plans on cost cuts, layoff and freezing new hires. CEO Bob Chapek in the memo to division heads said, "We are limiting headcount additions through a targeted hiring freeze."
He added, "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."
Coming to the layoffs, Chapek said, "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." He added, "we do anticipate some staff reductions as part of this review."
The CEO also informed the executives that business travel would be limited to essential trips only. Furthermore, Disney will soon establish "a cost structure taskforce" with Chapek, General Counsel Horacio Gutierrez and Chief Financial Officer Christine McCarthy.
Chapek wrote, "I am fully aware this will be a difficult process for many of you and your teams". He added, "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 important time."
This move was made after Disney had a disappointing quarterly result, where shares of the company fell drastically before rebounding a week after.
McCarthy on Tuesday during Disney's call on earning said, "We are actively evaluating our cost base currently, and we're looking for meaningful efficiencies". She added, "Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits."
Disney is not alone in these cut downs, large media companies like Netflix, Warner Brothers and Discovery have met with a similar fate.
