News outlet CNBC obtained a Disney company memo that CEO Bob Chapek sent to executives on Friday, November 11, 2022, announcing a hiring freeze, job cuts, and a reduction in staff and business travel.
In the memo, Chapek noted that hiring for a small number of critical positions will continue, but that all other hiring was on hold.
Chapek said that the company will limit business travel to essential trips only and that employees should meet virtually as much as possible.
Chapek created a “cost structure taskforce” that included Chief Financial Officer (CFO) Christine McCarthy and General Counsel Horacio Gutierrez which will “ensure our investments are both efficient and come with tangible benefits to both audiences and the company.” The memo stated that “we do anticipate some staff reductions as part of this review.”
The company is also preparing a contingency plan for a possible recession.
The announcement comes after disappointing Q4 earnings results which accompanies a drop in the stock price, and financial analyst Jim Cramer calling for Chapek to be fired.
Surprised that Disney is freezing hiring and cutting expenses?