Daily Management Review

Disney to cut jobs amid crisis


In an effort to turn the streaming service Disney+ profitable during a time of economic uncertainty, Walt Disney Co. plans to halt hiring and eliminate certain positions, reports Reuters citing an internal newsletter.

Steven Miller
Steven Miller
The letter was written by CEO Robert Chapek to Disney executives, outlining the company's plans to partially halt recruiting and expect "small personnel losses" as the company is working to reduce expenses.

While some macroeconomic variables are outside of our control, Chapek noted that in order to attain these goals, "we all need to continue working on what is within our control, principally expenses."

The rapidly expanding streaming service added 12 million new customers in the fourth fiscal quarter, according to Disney, but it also reported an operational loss of about $1.5 billion. Disney+ losses peaked in the most recent quarter, while the company expects a profit in fiscal 2024.

Wall Street analysts are raising concerns about the escalating cost of streaming. The business will have to demonstrate that its entry into direct-to-consumer streaming is worth the investment price it pays for, according to MoffettNathanson analyst Michael Nathanson, who made this observation this week.

source: reuters.com