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Disney to Begin Mass Layoffs and Freeze Hiring

Disney to Begin Mass Layoffs and Freeze Hiring

Disney is the latest corporation to announce massive lay offs.

I guess people might be against child grooming even as the Disney Company is pushing it full steam ahead. When you go woke, you go broke they say.

Disney has announced that they will be laying off many of their workers and are putting a hiring freeze into effect in order to cut expenses. The question is will the child groomers be the last ones to face layoffs for diversity’s sake?

A leaked internal memo has announced the plan for layoffs, a hiring freeze, and limiting business travel.

Disney CEO Bob Chapek wrote in a memo to top executives:

“I am fully aware this will be a difficult process for many of you and your teams.”

“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. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.”

In the letter, Chapek explains how he convened a cost structure task force. It consists of executive officers such as CFO Christine McCarthy and General Counsel Horacio Gutierrez.

Chapek explained:

“Along with me, this team will make the critical big-picture decisions necessary to achieve our objectives.” 

The three objectives are:

  • to review the company’s content and marketing spending by working with content leaders and their teams.
  • limiting headcount additions through a targeted hiring freeze
  • review Selling, General, and Administrative expenses (SG&A) costs

CNBC reported:

The moves come after Disney reported disappointing quarterly results. Shares of the company fell sharply Wednesday, hitting a new 52-week low, before rebounding later in the week.

McCarthy said during Disney’s earnings call Tuesday that the company was looking for ways to trim costs.

“We are actively evaluating our cost base currently, and we’re looking for meaningful efficiencies,” she said. “Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits.”

Disney’s streaming services lost $1.47 billion last quarter, more than double the unit’s loss from a year prior. McCarthy said losses will improve in 2023, and Chapek has promised streaming will become profitable by the end of 2024.

Other large media and entertainment companies, including Warner Bros. Discovery and Netflix, have cut jobs this year as valuations have slumped. Disney hasn’t announced any plans to eliminate jobs.

As long as they continue to make woke movies that very few people want to see, Disney will remain unprofitable.

Below is the full transcript of Chapek’s memo:

Disney Leaders-

As we begin fiscal 2023, I want to communicate with you directly about the cost management efforts Christine McCarthy and I referenced on this week’s earnings call. These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall. This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with.

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. You all will have critical roles to play in this effort, and as senior leaders, I know you will get it done.

To be clear, I am confident in our ability to reach the targets we have set, and in this management team to get us there.

To help guide us on this journey, I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives.

We are not starting this work from scratch and have already set several next steps—which I wanted you to hear about directly from me.

First, we have undertaken a rigorous review of the company’s content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company.

Second, we are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.

Third, we are reviewing our SG&A costs and have determined that there is room for improved efficiency—as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. 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. In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team.

Our transformation is designed to ensure we thrive not just today, but well into the future—and you will hear more from our taskforce in the weeks and months ahead.

I am fully aware this will be a difficult process for many of you and your teams. 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. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.

Thank you again for your leadership.

-Bob

I remember on Sunday night, gathering around the television set and watching The Wonderful World of Disney with Walt Disney himself. I can’t help but wonder what Uncle Walt would say if he could see what they have done to his company. He couldn’t be happy.

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  • Steven Ahle

    My investigation into a DHS program that instructed law enforcement to treat Christians as terrorists won me the 2014 CJN Journalist of the Year award. Here is a video of Glenn Beck reading my article on his program: https://www.youtube.com/watch?v=7y6asmOkdNE&t=282s I am a troll bridge. You can cross me, but you will pay a price.

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Comments 5

  1. Grizz Mann says:

    C’mon man! People are now becoming WOKE to what Democrat Groomers mean when they say ”It’s for the children.”.

  2. Adonis says:

    Original Disney’s business model was to make kids happy and forget struggles and pressure f their every day life. Once the company went political and woke the original model went out the window. Governor DeSantis and Florida legislature took Disney’s preferential self governing status away specifically to punish it for heavy handed and public woke involvement in politics, and families with young children became aware of new woke Disney. So another woke is witnessing the consequences they deserve.

  3. andy says:

    Ol’ Walt was a hosted Nazis. Walt was also sexist and racist. He hated communists. His films and shows have promulgated witchcraft and sorcery and a secular humanist worldview.

    I hope the entire company goes belly up.

  4. Tom says:

    Well stating that Walt Disney would not be happy as a fact is really nothing more than speculation. Remember Walt Disney grew his company from obscurity producing propaganda videos for the Nazis. Now as far as expense control, there are two methods: 1) Cut expenses, 2) Increase revenues to match your expense goals. Since Disney has gone woke, they pretty much have eliiminated method 2. So what is left is method 1. Perhaps Disney should re-evaluate its woke positions and plug into more mainstream revenues.

    • Kawika56 says:

      So you believe Walt was doing propaganda FOR the NAZIS… at the SAME time as he was doing propaganda AGAINST the NAZIS?
      Perhaps you need to watch them again, you can find them online.

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