A few weeks ago, we learned that The Walt Disney Company had planned to implement a hiring freeze at the company as well as initiate layoffs. This was announced by former CEO Bob Chapek as part of a cost-cutting initiative.
In a memo that accompanied this news, Disney CEO Bob Chapek wrote: “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.”
This bombshell came just days after Disney shared its 4th quarter earnings which included some impressive numbers.
According to the filing by Disney, the Disney Parks division of the company posted $7.4 billion in revenue for the fourth quarter of 2022 and a whopping $28.7 billion in total revenue for the fiscal year 2022, which ended on October 1, 2022. However, Disney’s stock price has continued to drop, seeing the biggest drop it has had in a single day in over two decades.
Of course, Bob Chapek is no longer the acting CEO of Disney, as Bob Iger swiftly related him last week. This news shocked the Disney community, with Iger stepping back into a role he had previously spent 15 years in. According to a new report from CNBC, Chapek was not given much time to process the bombshell decision.
However, Bob Iger is still planning on carrying out this hiring freeze. This was confirmed in a town hall held by Bob Iger earlier Monday morning.
As to what this means for The Walt Disney Company, we are left speculating. But the decision originally announced by Chapek also included layoffs.
Stay tuned here at Inside the Magic for updates!