According to a leaked memo, Bob Chapek is predicting some staff reductions once the company reviews its spending. New hires will only be brought on for the most critical, business-driving positions, according to reports.
Disney is not the only company pushing streaming services. Many workers have lost their jobs at Warner Bros. While it has laid off hundreds of employees this year, the company noted during its last earnings call that its business is still profitable, unlike its competitors.
Disney will form a task force to look at its finances, but there are no details about how many workers will be affected. After its earnings call on Tuesday, Disney CFO Christine McCarthy said that the company was looking for ways to cut costs.
The mouse is not immune to economic uncertainties.
In order to cut down on travel expenses, the company has told employees to conduct business meetings virtually when they can.
The company added millions of subscribers to its streaming services. Even after raising prices and prompting many people to choose a pricier bundle of entertainment services, it's still losing money on its direct-to- consumer business as it spends millions to create content that will keep subscribers coming in. It lost over a billion dollars on its streaming efforts.
Outside of entertainment, the tech world has seen some brutal cuts: Meta and Twitter have laid off thousands in the last week alone.
All Rights Reserved © 2024
