There will be a hiring freeze and some job cuts at Disney, according to an internal memo sent to executives.
According to a memo to division leads sent Friday and obtained by CNBC, the company is limiting the number of hires through a hiring freeze. All other roles are on hold, but hiring for the small subset of the most critical, business- driving positions will continue. The segment leaders and HR teams have more information about how this will apply to your teams.
We anticipate some staff reductions as part of this review as we look at every avenue of operations and labor to find savings. Disney has a large workforce.
Business travel should only be used for essential trips, according to the man. He said in the memo that meetings should be conducted as much as possible.
The Chief Financial Officer of Disney, Christine McCarthy, will be part of a cost structure task force.
Many of you and your teams will be going through a difficult process. We will have to make difficult decisions. I would like to thank you in advance for stepping up during this crucial time.
Disney reported disappointing third quarter results. The company's shares plummeted to a new 52 week low on Wednesday, but rebounded later in the week.
McCarthy said during the earnings call that Disney was looking for ways to cut costs.
She said that they are looking for meaningful efficiency. Some of those will provide short-term savings and others will drive long-term structural benefits.
Disney's streaming services lost more money last quarter than they did a year ago. McCarthy said streaming will be profitable by the end of the year.
Several large media and entertainment companies have cut jobs this year due to falling valuations. There are no plans to eliminate jobs.
Here is the full memo.
They are Disney leaders.
I want to let you know that Christine McCarthy and I talked about cost management on the earnings call. The goals of reaching profitability for Disney+ and making us a more efficient company will be achieved by these efforts. The work is being done against a backdrop of uncertainty in the economy.
While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control As senior leaders, I know you'll get it done, because you'll have critical roles to play.
I am confident that we can get to the targets we have set and that this management team can do it.
The CFO and General Counsel are part of a cost structure task force that I have established. The critical big picture decisions will be made by this team along with me.
We are not starting from scratch and have already set several next steps.
We have done a thorough review of the company's spending on marketing and content. We won't sacrifice quality or the strength of our synergy machine, but we must make sure our investments are both efficient and beneficial to the company.
We are limiting the number of hires through a hiring freeze. All other roles are on hold, but hiring for the small subset of the most critical, business- driving positions will continue. The details of how this will apply to your teams have been given by your segment leaders.
There is room for improved efficiency, as well as an opportunity to transform the organization, as a result of our review of our costs. Both savings and organizational enhancements will be achieved with the help of the taskforce. We anticipate some staff reductions as a result of this review, as we look at every avenue of operations and labor to find savings. Business travel should now only be used for essential trips. In-person work sessions or offsites will need to be approved and reviewed by a member of your executive team. These meetings should be done virtually. A member of your executive team will need to approve attendance at conferences.
Our transformation is designed to ensure we thrive well into the future and you will hear more from our task force in the weeks and months ahead.
Many of you and your teams will face a difficult process. We will have to make difficult decisions. I would like to thank you in advance for stepping up during this important time. I have no doubt that we will achieve our goals and create a company better suited to the environment of tomorrow, as our company has weathered many challenges during our 100 years of existence.
I would like to thank you for your leadership.
There is a person named Bob.
Disney had to get into streaming, but Meta didn't hire enough.
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