Disney plans to institute a targeted hiring freeze and eliminate some jobs after the company’s latest earnings report sent shares plummeting earlier this week, CNBC reports.
“We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo to division leads obtained by CNBC. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.”
Disney shares hit a 52-week low Wednesday after the Burbank-based entertainment giant missed earnings expectations and announced that its streaming service, Disney+, lost $1.47 billion last quarter despite adding 12 million subscribers.
“I am fully aware this will be a difficult process for many of you and your teams,” Chapek wrote. “We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time.”
Disney has approximately 190,000 employees.
On Tuesday’s earnings call, Chief Financial Officer Christine McCarthy told investors that losses will narrow in 2023. Chapek says Disney’s streaming business will become profitable by the end of 2024.