The message was delivered to Disney executives by CEO Bob Chapek, who stated that the business is adopting a targeted hiring block and anticipates “some small personnel layoffs” as it seeks to manage costs.
“While certain macroeconomic elements are beyond our control,” Chapek wrote in the message, “achieving these goals needs every one of us to continue doing our part to manage the areas we can control, most notably our expenses.”
The move came after Disney missed Wall Street estimates for quarterly earnings on Tuesday, as the entertainment conglomerate incurred additional losses from its push into streaming video, dubbed its direct-to-consumer (DTC) business. Following the release of the results, the company’s stock dropped more than 13% on Wednesday.
The move comes after Disney failed Wall Street projections for quarterly profitability, as the entertainment conglomerate continued to incur losses from its foray into streaming video, dubbed its direct-to-consumer (DTC) division.
The fast-growing service added 12 million subscribers in its fiscal fourth quarter, according to Disney, but it recorded an operational loss of roughly $1.5 billion. The corporation stated that Disney+ will become profitable in fiscal 2024, with losses peaking in the third quarter.
Original series such as “Star Wars” entries “The Mandalorian,” “Andor,” and “Obi-Wan Kenobi,” Marvel entries “WandaVision,” “Hawkeye,” and “She-Hulk: Attorney at Law,” and content hubs for Disney, Pixar, Marvel, and “Star Wars” blockbusters distinguish the streaming service. (Reuters)
