It has been reported by CNBC, that Disney is planning a hiring freeze and job cuts. This has become known due to an internal memo which was sent by Bob Chapek to executives on Friday, November 11.
Chapek said, “As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review.”
Regarding the hiring freeze, Chapek said, “We are limiting headcount additions through a targeted hiring freeze,” “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.”
This strategy to cut jobs and instill a hiring freeze appears to have been prompted by the disappointing quarterly revenue report which was announced on Tuesday. As a result of this, Disney's share price fell drastically on Wednesday, hitting a 52-week low.
Disney is therefore looking to cut costs where possible. Chief Financial Officer Christine McCarthy said, “We are actively evaluating our cost base currently, and we’re looking for meaningful efficiencies,” she said. “Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits.”
Christine McCarthy, General Counsel Horacio Gutierrez and Bob Chapek will all be part of a new "cost structure taskforce" to forge the necessary changes.
News of a hiring freeze and potential job cuts will certainly come as unwelcome news for Disney employees and we hope that these job cuts will be as small as possible. We will keep you updated on this on our news and Facebook page.