Disney is not spared the streaming crisis either, and could cut its workforce and rein in spending, both of which could affect its streaming services.
The market is going through a turbulent moment, something that we are seeing in most streaming services such as Netflix or HBO Max who have had to cut their workforce and also long-term investments in new series and movies.
Though Disney had stayed on the sidelines with its subscription services, it looks like things are going to change according to the latest reports. And it is that the company is preparing to cut jobs, according to a leaked memo from its CEO.
In this way, the conglomerate seeks to reduce costs by cutting part of its workforcebut also looking at the issue of freezing new contracts, something that could end up affecting services of the caliber of Disney+.
Specifically, the CEO of Disney, Bob Chapekwould have indicated that they are expected “some staff reductions” once the company reviews its spending, according to a leaked memo published by the CNBC.
The conglomerate also intends freeze most hiring and they only plan to recruit new employees for the most important positions “capable of boosting the business”.
It is unknown how many workers may be affected given that Disney will first start forming “a cost structure working group” to review each of your finances.
It was already glimpsed in the last meeting with investors last Tuesday, where the financial director Christine McCarthy pointed out that they were “evaluating your cost base to look for significant efficiencies”.
The company would also be looking to save in terms of employee travel, urging them to hold business meetings virtually instead of in person.
A Disney Plus that is not yet profitable
While Disney has added millions of new subscribers to streaming services like Disney+, ESPN plus and Hulu in the last quarter, it seems they haven’t escaped the internet crisis. streaming.
However, it is no secret that Disney continues to lose money on services like Disney +, although it expects it to end up being profitable as of 2024.
It is still early to venture with any type of hypothesis, but it seems that the streaming market, as we had previously known it in services like Netflix, will take a considerable turn in the coming months.
