Disney announces hiring freeze, layoffs after $1.5 bn quarterly loss in streaming business

Walt Disney announced hiring freeze and layoff as a part of cost-cutting measure as the streaming business suffers loss.

Walt Disney's Chief Executive Bob Chapek in a memo on Friday addressed executives at senior vice president level or above, said that they have to mae 'tough and uncomfortable decisions.'

In the memo, Bob Chapek said, "I'm fully aware tis will be a difficult process for many for you and your teams. We are going to make tough and uncomfortable decisions. While certain macroeconomic factor are out of our control, meeting these goals require us to continue doing our part to mange the things we can control- most notably, our costs,"

This move comes as the company strives to move the streaming service to profitability as it reported a $1.5 billion quarterly loss in its streaming business. The shares of the company fell more than 13 per cent on Wednesday following its results.

Wall Street analysts voiced concern about Disney’s escalating streaming costs. Analyst Michael Nathanson observed in a note this week that “the company has to prove that their pivot to DTC will be worth the investment price that is currently being paid.”

Job cuts can be seen in a lot of companies all over to brace the economic downturn. Meta Platforms said this week it would cut more than 11,000 jobs, or 13% of its workforce to rein in costs.

Warner Bros Discovery, has undergone dramatic cost-cutting efforts, including layoffs, as the recently merged company restructures its content operations.