The Walt Disney Co. plans to freeze hiring and cut some jobs ahead of the winter break after a disappointing quarter, according to a report. In the memo sent to employees, Disney CEO Bob Chapek said the company would prioritize cost-saving measures, including “some staff reductions.” “I am fully aware that this will be a difficult process for many of you and your teams,” Chapek wrote. “We will need to make tough and uncomfortable decisions. But that is exactly what leadership requires, and I thank you in advance for stepping up during this important time.” In this photo image The Walt Disney Company logo appears to be displayed on a smartphone. (Thiago Prudencio/SOPA Images/LightRocket via Getty Images/Getty Images) “As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we expect some staff reductions as part of this review,” Chapek said in the memo sent Friday. DISNEY+ SUBSCRIBER BASE GROWS 12.1 MILLION IN Q4 The chief executive also said the company would limit the number of additional staff it hired and was only focused on getting new staff in the “most critical positions that drive the business”. “We are limiting staff additions through a targeted hiring freeze. Hiring for the small subset of the most critical business leadership positions will continue, but all other roles are on hold. Your department leaders and HR teams have more specific details of how this will apply to your teams.” The Walt Disney Company logo is seen as traders work on the floor of the New York Stock Exchange during afternoon trading. (Michael M. Santiago/Getty Images/Getty Images) Disney has about 190,000 employees, a number that has been declining annually as of 2018. The note is the latest business indication of how Disney plans to build on a disappointing quarter, which appeared to discourage investors. The company’s shares fell to a 52-week low on Wednesday, from $101 on Monday to just under $87. They have since recovered to around $95 as of Friday afternoon. DISNEY CEO RESPONDS TO CLAIMS COMPANY IS ‘WIDELY WAKE UP’ Chapek also said in the memo that Disney will create “a cost structure task force” to further rein in the company’s expenses. It will be led by CEO, CFO Christine McCarthy and General Counsel Horacio Gutierrez. The memo comes days after McCarthy first announced Disney’s intention to make short- and long-term changes to save money. “We are actively evaluating our cost base right now and looking for meaningful performance,” he said. “Some of these will provide some short-term savings and others will have long-term structural benefits.” The Disney+ streaming connection screen is displayed on a television, Monday, Aug. 9, 2021, in East Derry, NH Walt Disney reports quarterly financial results and reports quarterly financial results. (AP Photo/Charles Krupa/AP Newsroom) GET THE FOX BUSINESS ON THE GO BY CLICKING HERE Disney has faced significant losses as unrelenting inflation continues to squeeze consumers’ pocketbooks. And while the Disney+ streaming service continues to gain subscriptions — the company boasted 12.1 million subscriber gains this quarter — operating losses continue to pile up. Disney reported losses of about $1.5 billion in its fiscal fourth quarter. The company has also been embroiled in controversy, including its open opposition to Florida Gov. Ron DeSantis’ signing of a bill barring the teaching of sexual orientation in classrooms and claims that they are too “woke” for some consumers.
