https://www.cnbc.com/2022/11/11/disney-plans-hiring-freeze-job-cuts-memo-says.html Skip Navigation logo * watchlive logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist Investing Club * Trade Alerts * Jim's Morning Thoughts * Analysis * Morning Meeting * Trust Portfolio PRO * Pro News * Pro Live * Subscribe * Sign In Menu * Make It * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN Create free account logo Markets Business Investing Tech Politics CNBC TV Watchlist Investing Club PRO Menu Media Disney plans targeted hiring freeze and job cuts, according to a memo from CEO Bob Chapek Published Fri, Nov 11 20224:51 PM ESTUpdated 1 Min Ago thumbnail Alex Sherman@sherman4949 WATCH LIVE Key Points * Disney plans to freeze hiring and cut some jobs, according to an internal memo. * The move comes after Disney reported disappointing quarterly results, sending the company's stock down to a new 52-week low. * Disney CEO Bob Chapek sent a memo to division leaders Friday afternoon. In this article * DIS Follow your favorite stocksCREATE FREE ACCOUNT In this photo illustration a close-up of a hand holding a TV remote control seen displayed in front of the Disney+ logo. Thiago Prudencio | SOPA Images | LightRocket | Getty Images Disney plans to institute a targeted hiring freeze as well as some job cuts, according to an internal memo sent to executives. "We are limiting headcount additions through a targeted hiring freeze," CEO Bob Chapek said in a memo to division leads sent Friday and obtained by CNBC. "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." related investing news Investors have been fleeing Big Tech for 'old economy' stocks. Here's what it means for our holdings CNBC Investing Club Investors have been fleeing Big Tech for 'old economy' stocks. Here's what it means for our holdings Paulina Likos 6 hours ago He added: "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." Disney has approximately 190,000 employees. Chapek also told executives business travel should be limited to essential trips only. Meetings should be conducted virtually as much as possible, he wrote in the memo. Disney is also establishing "a cost structure taskforce" to be made up of Chief Financial Officer Christine McCarthy, General Counsel Horacio Gutierrez and Chapek. "I am fully aware this will be a difficult process for many of you and your teams," Chapek wrote. "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." The moves come after Disney reported disappointing quarterly results. Shares of the company fell sharply Wednesday, hitting a new 52-week low, before rebounding later in the week. McCarthy said during Disney's earnings call Tuesday that the company was looking for ways to trim costs. "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." Disney's streaming services lost $1.47 billion last quarter, more than double the unit's loss from a year prior. McCarthy said losses will improve in 2023, and Chapek has promised streaming will become profitable by the end of 2024. Other large media and entertainment companies, including Warner Bros. Discovery and Netflix, have cut jobs this year as valuations have slumped. Disney hasn't announced any plans to eliminate jobs. The full memo can be read here: Disney Leaders- As we begin fiscal 2023, I want to communicate with you directly about the cost management efforts Christine McCarthy and I referenced on this week's earnings call. These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall. This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with. While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control--most notably, our costs. You all will have critical roles to play in this effort, and as senior leaders, I know you will get it done. To be clear, I am confident in our ability to reach the targets we have set, and in this management team to get us there. To help guide us on this journey, I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives. We are not starting this work from scratch and have already set several next steps--which I wanted you to hear about directly from me. First, we have undertaken a rigorous review of the company's content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company. Second, 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. Third, we are reviewing our SG&A costs and have determined that there is room for improved efficiency--as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. 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. In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team. Our transformation is designed to ensure we thrive not just today, but well into the future--and you will hear more from our taskforce in the weeks and months ahead. I am fully aware this will be a difficult process for many of you and your teams. 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. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow. Thank you again for your leadership. -Bob WATCH: Disney had to get into streaming, but Meta just did too much hiring Disney had to get into streaming, but Meta just did too much hiring watch now VIDEO4:3004:30 Disney had to get into streaming, but Meta just did too much hiring Fast Money logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logo * Subscribe to CNBC PRO * Licensing & Reprints * CNBC Councils * Supply Chain Values * CNBC on Peacock * Join the CNBC Panel * Digital Products * News Releases * Closed Captioning * Corrections * About CNBC * Internships * Site Map * Podcasts * Ad Choices * Careers * Help * Contact * * * * * * * News Tips Got a confidential news tip? We want to hear from you. Get In Touch Advertise With Us Please Contact Us CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. 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