It’s now the time for another big company, Walt Disney Co., to plan to freeze hiring and cut some jobs. This comes after Disney reported disappointing quarterly results. As an example, Disney’s streaming services lost $1.47 billion last quarter. “We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo to division leads sent Friday.
Disney has approximately 190,000 employees. Even executives business travel will be limited to essential trips only, to cut costs. „We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires,” the memo said. “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,” CEO Bob Chapek also wrote in the memo, The company’s shares fell more than 13 percent to a 52-week low on Wednesday, from $101 on Monday to just under $87. Disney will establish “a cost structure taskforce” to further trim the company’s expenses. It will be led by the CEO, Chief Financial Officer Christine McCarthy, and General Counsel Horacio Gutierrez. Corporate America is making deep cuts to its employee base to brace for an economic downturn.