Disney Reportedly Implementing Cost-Saving Measures After Failing To Meet Revenue Goals
(ConservativeHub.com) – It’s no secret that economies around the world are sluggish. Major companies are starting to figure out how to cut costs moving forward. Large social media companies, like Meta and Twitter, already began making layoffs, and now, another enormous business may be joining their ranks: Disney.
On Friday, November 11, news outlets reported that Disney CEO Bob Chapek messaged various leaders in his company to let them know there is now a “targeted hiring freeze.” In the memo shared in full by CNBC, he added that there might be “some staff reductions” as Human Resources evaluates other ways to minimize expenses.
— The Verge (@verge) November 12, 2022
Disney did not plan on its streaming site, Disney+, becoming profitable until 2024. However, its latest quarterly results were worse than expected, showing a $1.5-billion loss, sending the company’s stocks to the lowest they’ve been in a year when investors got spooked by the report.
Chapek acknowledged that the downsizing will lead to “tough and uncomfortable decisions.” But, not all the changes are similar to that of other large companies. The CEO encouraged employees to conduct meetings online as much as possible to limit travel, which is the opposite of some other companies, which have mandated employees to show up in person again. In all, Disney’s leader believes these changes will turn the entertainment behemoth into a “more nimble company better suited to the environment of tomorrow.”
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