The executive director of Disney, Bob Chapeksent a memo to company leaders announcing that the multinational will cut costs, freeze hiring and potentially lay off employees.
“I am fully aware that this will be a difficult process for many of you and your teams. We will have to make difficult and uncomfortable decisions,” the CEO wrote, as reported by CNBC.
This decision comes after Disney posted disappointing earnings last Tuesday. In total, the company earned $20.15 billion in quarterly revenuebelow the 21.25 billion expected by analysts.
Although Disney+ grew faster than expected, it is losing $1.47 billion a year.
Disney shares fell 13% after the earnings report. His worst fall in a single day in 20 yearsin accordance with Bloomberg.
Disney will reduce everybody Expenses
Chapek told his executive team that the first thing they will do is cut costs in areas including content, marketing and travel.
“For the immediate term, business travel should now be limited to essential travel only,” Chapek’s email said.
Regarding the content, he said that they will not sacrifice quality or strength but “we must ensure that our investments are efficient and provide tangible benefits for both the public and the company.”
Chapek warned that the company will freeze specific hiring and only focus on attracting talent for the most important roles.
“As we move through this evaluation process, we will look at all avenues of operations and labor to find savings, and we anticipate some staff reductions as part of this review,” he wrote.
Many companies have been cutting costs amid fears of a recession.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.