Disney (NYSE: DIS) is set to halt hiring and cut several jobs as it aims to push the Disney+ streaming service to profitability amid continuous economic instability, according to a memo. The memo was sent by Chief Executive Bob Chapek to the company’s top leaders, explaining that the changes would be implemented to help manage costs.
“We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time,” Chapek wrote.
“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,” Chapek wrote in the memo.
The novelty comes after the company missed Wall Street earnings estimates on Tuesday. Disney’s shares plummeted over 13% on Wednesday following the results.
“As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we anticipate some staff reductions as part of this review,” he added.
Nevertheless, Disney+ recently disclosed that it had added 12 million subscribers throughout its fiscal fourth quarter. Furthermore, the company states that the streaming service would become profitable in fiscal 2024.
“Our transformation is designed to ensure we thrive not just today, but well into the future,” Chapek wrote.