announced “Walt Disney” announced its plans to cut costs companywide, including a hiring freeze in all but the top positions, days after it suffered large losses in the broadcast service, and its shares registered the most violent level in over 20 years.
A new executive committee, including Chief Financial Officer Christine McCarthy and General Counsel Horacio Gutierrez, will lead the cost-savings effort, according to a statement issued Friday by Chief Executive Officer Bob Chapek. This will include staff reductions.
The entertainment giant recently shocked investors after announcing lower-than-expected quarterly sales and earnings. Two of its major businesses — broadcasting and theme parks — reported disappointing trading results.
Chapek said in the memo: “We are in the process of limiting the number of employees by freezing targeted hiring… Hiring will continue in small sub-departments, especially the most important positions directed at the company’s operations, but will be suspended in all other positions. ”.
The company also instructed employees to take essential travel only for business purposes and said it would seek management approval to attend conferences and other events.
Losses rose in Disney’s direct-to-consumer arm, led by the streaming service “Disney+”more than doubled to $1.47 billion in the company’s fiscal fourth quarter, due to increased programming expenses and the cost of introducing the service to new countries.
