Meanwhile, last month, positive news on the culture war front: there seemed to be a possible detante reached between (newly re-elected) Florida governor Ron DeSantis, who was hell-bent on stripping Disney of its special tax district, and the Mouse House itself.Īs 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. Snap cut 20 percent of its staff in late August. Elon Musk laid off nearly half of Twitter’s workforce last Friday, days after his takeover deal went through. Meta’s laid off 11,000 workers last week. Warner Bros Discovery has made several rounds of cuts totaling nearly $2.5 billion, including binning Batgirl. “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,” he wrote.ĭisney joins a group of media and entertainment companies exacting austerity measures. Last week, Disney reported weak Q3 earnings with a $1.5 billion quarterly loss at its streaming business, Disney+, causing stocks to hit a two-year low.Ĭhapek mentioned in the memo “the important goal of reaching profitability for Disney+ in fiscal 2024,” a recently recurring theme with him. No further details were given about the layoffs. In the memo, Chapek volunteered only that Disney does “anticipate some staff reductions as part of this review.” Following the termination of that untold number of Disney’s current 190,000-person workforce, there will also be a “targeted” hiring freeze for all but critical roles at the entertainment giant.Īdditionally, Chapek let it be known that the ultimate perk of unchecked business travel now officially belongs to a bygone ere, and from here on in will be limited to the “essential,” with virtual meetings highly encouraged. “We are going to have to make tough and uncomfortable decisions.” “I am fully aware this will be a difficult process for many of you and your teams,” Chapek wrote. It’s part of company-wide cost-cutting plans, Chapek said in an email addressed to all executives at the senior vice president level or above. Chapek did not indicate how many employees will be let go, or when he intends to give them the devastating news, but the number was apparently high enough to warrant a mass email, so it’s likely that a significant number of workers are in for a Thanksgiving surprise they will remember for the rest of their lives. The Mouse House is about to get an unfortunate bit cozier as Disney CEO Bob Chapek informed top brass on Friday to expect a round of layoffs following a poor third quarter.
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