Friday, September 22, 2023

Disney prepares to cut jobs, according to leaked CEO memo

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Disney CEO Bob Chapek predicts “some staff cuts” once the company revises its spending, according to a leaked memo published by CNBC. The company will also reportedly freeze most hires and only hire new employees for “the most critical, business functions.”

If Disney eventually makes a series of layoffs, it won’t be the only one of the companies pushing streaming services. Dozens of employees have lost their jobs at Warner Bros. this year. Television and HBO Max. Netflix also laid off hundreds of employees this year as it reported slower subscriber growth, but noted during its latest earnings call that its company remains profitable, unlike its premium streaming competitors, including Disney.

So far, there are no details on how many employees may be affected as Disney will begin forming a “cost structure task force” to go over the finances. However, the prospect of layoffs loomed after his profit call on tuesday when CFO Christine McCarthy said Disney “is currently actively evaluating our cost base and looking for meaningful efficiencies.”

Even the mouse is not immune to economic uncertainty

The company is tightening its belt in other ways as well, with Chapek’s memo instructing employees to hold business meetings virtually whenever they can to cut travel costs.

Outside of entertainment, the tech world has undergone some brutal cutbacks: Meta and Twitter have laid off thousands in the past week alone, while Amazon has put in place a business freeze. In the past few months, Snap, Microsoft and several crypto firms have also reduced their ranks.

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