Walt Disney Co Chief Executive Bob Chapek made an announcement on Friday via a memo addressed to all executives at the senior vice president level or above. The company is planning to freeze hiring, and layoffs are likely as part of its cost-cutting measures, stated the internal memo viewed by several publications.

The move is being made to get the Disney+ streaming service to profitability against the backdrop of economic uncertainty. The strict measures come days after Disney reported a $1.5 billion quarterly loss in its streaming business.&nbsp;Shares of the company fell more than 13% on Wednesday following its results.

In the memo, Chapek said a task force has been instituted to review marketing, content and administrative spending across the entire company and recommend cuts. The team is led by finance chief Christine McCarthy and general counsel Horacio Gutierrez.

“I’m fully aware this will be a difficult process for many of you and your teams,” Chapek said in the memo. “We are going to have to make tough and uncomfortable decisions.”

“While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control – most notably, our costs,” Chapek added.

The streaming service is known for original series including the 'Star Wars'&nbsp;entries 'The Mandalorian',&nbsp;'Andor'&nbsp;and 'Obi-Wan Kenobi',&nbsp;the Marvel entries 'WandaVision',&nbsp;'Hawkeye'&nbsp;and 'She-Hulk: Attorney at Law',&nbsp;and content hubs for Disney, Pixar, Marvel and 'Star Wars'&nbsp;films.

Wall Street analysts voiced concern about Disney’s escalating streaming costs. MoffettNathanson analyst Michael Nathanson observed in a note this week that “the company has to prove that their pivot to DTC will be worth the investment price that is currently being paid.”

Corporate America is making deep cuts to its employee base to brace for an economic downturn. Meta Platforms said this week it would cut more than 11,000 jobs, or 13% of its workforce to rein in costs.

Also read:&nbsp;<a href="https://www.wionews.com/entertainment/ranveer-singh-gets-honoured-with-etoile-dor-award-at-marrakech-international-film-festival-533466" hreflang="en">Ranveer Singh gets honoured with Etoile d’Or award at Marrakech International Film Festival</a>

One of Disney’s studio peers, Warner Bros Discovery, has undergone dramatic cost-cutting efforts, including layoffs, as the recently merged company restructures its content operations.

Chapek said Disney has established a task force, including Chief Financial Officer Christine McCarthy and General Counsel Horacio Gutierrez, to help him make “critical big-picture decisions.”

The company already has begun looking at content and marketing spending, but Chapek said the cuts would not sacrifice quality. Hiring will be limited to a small subset of critical positions, and some staff reductions are anticipated, as the company looks to make itself more cost-efficient, he&nbsp;wrote.

Chapek said business travel would be limited and trips would require advance approval, or be conducted virtually as much as possible.

“Our transformation is designed to ensure we thrive not just today, but well into the future,” he&nbsp;wrote. The memo was first reported by CNBC.

(With inputs from agencies)

Walt Disney Co Chief Executive Bob Chapek made an announcement on Friday via a memo addressed to all executives at the senior vice president level or above. The company is planning to freeze hiring, and layoffs are likely as part of its cost-cutting measures, stated the internal memo viewed by several publications.

Walt Disney Co Chief Executive Bob Chapek made an announcement on Friday via a memo addressed to all executives at the senior vice president level or above. The company is planning to freeze hiring, and layoffs are likely as part of its cost-cutting measures, stated the internal memo viewed by several publications. The move is being made to get the Disney+ streaming service to profitability against the backdrop of economic uncertainty. The strict measures come days after Disney reported a $1.5 billion quarterly loss in its streaming business. Shares of the company fell more than 13% on Wednesday following its results. In the memo, Chapek said a task force has been instituted to review marketing, content and administrative spending across the entire company and recommend cuts. The team is led by finance chief Christine McCarthy and general counsel Horacio Gutierrez. “I’m fully aware this will be a difficult process for many of you and your teams,” Chapek said in the memo. “We are going to have to make tough and uncomfortable decisions.” “While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control – most notably, our costs,” Chapek added. The streaming service is known for original series including the 'Star Wars' entries 'The Mandalorian', 'Andor' and 'Obi-Wan Kenobi', the Marvel entries 'WandaVision', 'Hawkeye' and 'She-Hulk: Attorney at Law', and content hubs for Disney, Pixar, Marvel and 'Star Wars' films. Wall Street analysts voiced concern about Disney’s escalating streaming costs. MoffettNathanson analyst Michael Nathanson observed in a note this week that “the company has to prove that their pivot to DTC will be worth the investment price that is currently being paid.” Corporate America is making deep cuts to its employee base to brace for an economic downturn. Meta Platforms said this week it would cut more than 11,000 jobs, or 13% of its workforce to rein in costs. Also read: Ranveer Singh gets honoured with Etoile d’Or award at Marrakech International Film Festival One of Disney’s studio peers, Warner Bros Discovery, has undergone dramatic cost-cutting efforts, including layoffs, as the recently merged company restructures its content operations. Chapek said Disney has established a task force, including Chief Financial Officer Christine McCarthy and General Counsel Horacio Gutierrez, to help him make “critical big-picture decisions.” The company already has begun looking at content and marketing spending, but Chapek said the cuts would not sacrifice quality. Hiring will be limited to a small subset of critical positions, and some staff reductions are anticipated, as the company looks to make itself more cost-efficient, he wrote. Chapek said business travel would be limited and trips would require advance approval, or be conducted virtually as much as possible. “Our transformation is designed to ensure we thrive not just today, but well into the future,” he wrote. The memo was first reported by CNBC. (With inputs from agencies)

Disney freezes hiring, announces layoffs after $1.5bn quarterly loss in streaming business

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Disney freezes hiring, announces layoffs after $1.5bn quarterly loss in streaming business