Disney CEO Bob Chapek advised executives to only take necessary business travels. Virtual meetings should be conducted as often as possible…reports Asian Lite News
Facing a slow revenue growth, Disney has reportedly planned to reduce its workforce and freeze hiring.
According to an internal leaked memo from Disney CEO Bob Chapek, seen by CNBC, the company is “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”, he wrote.
Approximately 190,000 people work at Disney.
“As we work through this evaluation process, we will look at every avenue of operations and labour to find savings, and we do anticipate some staff reductions as part of this review,” said Chapek.
He also advised executives to only take necessary business travels. Virtual meetings should be conducted as often as possible.
Additionally, the company has planned to create “a cost structure taskforce”.
“I am fully aware this will be a difficult process for many of you and your teams,” Chapek mentioned.
Chapek has predicted that the company will become profitable by the end of 2024.
“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” he added.
The actions were taken after the company released disappointing quarterly results.
Global revenues for The Walt Disney Company decreased 18 per cent to $1.1 billion and operating income dropped 18 per cent to $0.1 billion, owing to a decrease in advertising revenue due to lower average viewership, especially in India where there was no cricket in the quarter.
The most significant impact was on the timing of Indian Premier League (IPL) cricket matches, as there were no matches on Disney+Hotstar in the quarter that ended on October 1, compared to 18 matches in the prior-year quarter, The Walt Disney Company said in its quarterly earnings call late on Tuesday.
“Lower results from ongoing channels were primarily due to a decrease in advertising revenue and, to a lesser extent, higher marketing spend and an unfavourable foreign exchange impact, partially offset by lower sports programming costs,” said the company.
The decreases in sports programming costs and average viewership were due to the non-comparability of cricket events reflecting the impact of Covid-related timing shifts, it informed.
However, the viewership as well as revenues were set to increase significantly in the ongoing quarter amid the T20 Men’s World Cup.
Global revenues for The Walt Disney Company decreased 18 per cent to $1.1 billion and operating income dropped 18 per cent to $0.1 billion, owing to a decrease in advertising revenue due to lower average viewership, especially in India where there was no cricket in the September quarter.