Bob Chapek set to start layoffs at Disney in order to cut costs.
Disney is facing tough times in the markets and in response, CEO Bob Chapek has announced that the multimedia conglomerate is about to begin a massive cost-cutting process that will halt hiring, limit travels, and unfortunately see significant staff layoffs. The announcement which came in form of an in-house memo distributed to executives and obtained by media outlets comes a few days after Disney's Q3 financial reports presented disappointing figures.
The new measures will set Disney on a long recovery road with profits set to pick up earliest by 2024, according to Wall Street financial projections. Disney is set to close out the year on more losses as forecasts for the fourth quarter are equally unsatisfactory. Despite an increase in subscriber numbers for the third quarter, the company's streaming arm still recorded a mammoth loss of $1.47 billion nearly double the figures recorded within the same time period in 2021.
COLLIDER VIDEO OF THE DAY In order to re-steer the company towards profit, Chapek wrote in his memo that these "tough and uncomfortable decisions" are "just what leadership requires." Addressing the potential layoff, Chapek wrote: “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.
The coming months are set to reveal just how these decisions will alter the fate of our franchises, until then, we're keeping our fingers crossed and hoping for the best.
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