Disney also faces 'cold wind' layoffs... "Some workforce reductions expected"

Hiring Freeze and Business Trip Restrictions... Cost Reduction Ordered

[Image source=AP Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Amid a recent wave of workforce restructuring at major U.S. big tech companies, Disney, a leading American media company, is also reportedly planning employee layoffs.

The Wall Street Journal (WSJ) reported on the 12th (local time) that Disney CEO Bob Chapek sent a memo to senior vice president-level executives and above, ordering company-wide cost reductions including layoffs and hiring freezes.

In the memo, Chapek stated, "We anticipate some workforce reductions," announcing a hiring freeze across all departments except for critical positions and restrictions on business trips unrelated to essential work. He also formed a task force (TF) involving the company’s CFO and legal counsel to review expenditures in marketing, content, and administrative areas, urging all departments to implement cost-saving measures.

He added, "I know this will be a difficult process for you and your teams, but we will make tough and uncomfortable decisions."

Disney recorded a net loss of $1.47 billion (approximately 1.9 trillion KRW) in its streaming division for the fiscal fourth quarter (July to September). The combined net profit of all divisions was $162 million (approximately 210 billion KRW), barely surpassing last year’s net profit of $159 million for the same period.