After poor quarterly results released on Wednesday, Disney wants to clamp down. In an internal note consulted by the Wall Street Journal November 11, Entertainment Group CEO Bob Chapek has revealed his plans to cut costs.
In fact, the American company has suffered a large quarterly loss in its transmission activity. Given this, the management intends to raise the bar, starting by reducing all its non-essential costs.
An audit to evaluate all expenses
Therefore, an internal audit will be carried out to examine all the expenses in terms of marketing, content and administration, warned the boss in this letter addressed to all the high-level executives of the group.
The suppression of all business trips will also be applied, except those considered essential.
“staff reductions”
As for expenses related to jobs, they will also come under scrutiny. If the CEO has already announced a hiring freeze, the reduction in labor costs could go one step further.
On the other hand, the management did not specify the number of layoffs expected.
On its Disney+ platform, the group strives to turn subscriber growth into profit. Despite the 12.1 million net new accounts registered on its Disney platform in the last quarter, streaming activity did post a loss of $1.47 billion in the last quarter.
Source: BFM TV
