Bob Chapek at D23 Expo 2017 in Anaheim, California.
Image Group LA/Disney via Getty Images
Disney is planning for a hiring freeze and potential job cuts, according to CNBC.
CEO Bob Chapek issued an internal memo to the company’s executives Friday.
The decision follows a 52-week low in the company’s stock.
After hitting a new 52-week low in its stock price this week, Disney’s CEO Bob Chapek has issued an internal memo calling for a targeted hiring freeze and job cuts.
The news was first reported by CNBC on Friday, which claimed to have seen the memo.
“We are limiting headcount additions through a targeted hiring freeze,” CNBC reported that CEO Bob Chapek said in the memo to division leads. “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.”
Disney joins Netflix and Warner Brothers in its plans to downsize staff amidst a tough economic climate.
Disney’s stock price has rebounded a bit since it dropped 13% on Wednesday after the company reported its quarterly results, which saw the company post an operating loss of $1.47 billion for its direct-to-consumer segment, which includes Disney +. That’s more than double its loss from the same period last year.
In a call with analysts following the earnings report, CEO Bob Chapek projected that Disney + will be profitable by 2024.
Disney did not immediately respond to Insider’s request for a comment.