Disney is implementing a hiring freeze and cutting costs, according to a memo from CEO Bob Chapek to executives.
According to the memo obtained by CNBC, Disney is “limiting headcount additions through a targeted hiring freeze” and the company does “anticipate some staff reductions.”
The memo also called for limited business travel and more virtual meetings, and announced the creation of a “cost structure task force.”
Despite growth, Disneys earnings still have not reached pre-pandemic levels, and shares fell last week on a forecast that profit and revenue growth would slow in the coming year.
In the latest earnings report, Chapek pointed to “subscriber growth at our direct-to-consumer services,” including 12.1 million Disney+ subscribers added in the fourth quarter.
Chapek said the company expects direct-to-consumer operating losses to “narrow” and that Disney Plus “will still achieve profitability in fiscal 2024.”
