Disney plans to freeze hiring and cut some jobs
Disney has said the fast-growing service added 12 million subscribers in its fiscal fourth quarter but reported an operating loss of nearly $1.5 billion.
November 12, 2022
Walt Disney Co is planning to freeze hiring and cut some jobs as it strives to move the Disney+ streaming service to profitability against a backdrop of economic uncertainty, according to a memo.
Chief Executive Bob Chapek sent the memo to Disney's leaders, saying the company is instituting a targeted hiring freeze and anticipates "some small staff reductions" as it looks to manage costs.
"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 - most notably, our costs," Chapek wrote in the memo.
The move came after Disney missed Wall Street estimates for quarterly earnings on Tuesday as the entertainment giant racked up more losses from its push into streaming video, which it refers to as its direct-to-consumer (DTC) business. Shares of the company fell more than 13% on Wednesday following its results.
Disney has said the fast-growing service added 12 million subscribers in its fiscal fourth quarter but reported an operating loss of nearly $1.5 billion. The company said Disney+ would become profitable in fiscal 2024, with losses having peaked in the quarter.
The streaming service is known for original series including the "Star Wars" entries "The Mandalorian," "Andor" and "Obi-Wan Kenobi," the Marvel entries "WandaVision," "Hawkeye" and "She-Hulk: Attorney at Law," and content hubs for Disney, Pixar, Marvel and "Star Wars" films. (Reuters)
