Disney set to reduce its workforce, freeze hiring amid revenue drop

Disney apparently planned to downsize its employees and stop hiring as a result of the slow revenue growth.

According to an internal leaked memo from Disney CEO Bob Chapek, seen by CNBC, the company is "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", he wrote.

Approximately 1,90,000 people work at Disney.

"As we work through this evaluation process, we will look at every avenue of operations and labour to find savings, and we do anticipate some staff reductions as part of this review," said Chapek.

He also advised executives to only take necessary business travels. Virtual meetings should be conducted as often as possible.

Additionally, the company has planned to create "a cost structure taskforce".

"I am fully aware this will be a difficult process for many of you and your teams," Chapek mentioned.

Chapek has predicted that the company will become profitable by the end of 2024.

"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" he added.

The actions were taken after the company released disappointing quarterly results.

Global revenues for The Walt Disney Company decreased 18 percent to $1.1 billion, and operating income dropped 18 percent to $0.1 billion, owing to a decrease in advertising revenue due to lower average viewership, especially in India, where there was no cricket in the September quarter.

With inputs from Agencies