Walt Disney Co plans to freeze hiring and cut some jobs, a memo seen by Reuters has reported on Friday. This move comes as the company strives to move the Disney+ streaming service to profitability amid a period of economic uncertainty, according to a memo.The memo was sent by company's Chief Executive Bob Chapek. It was sent to Disney's division leaders, saying the company is instituting a targeted hiring freeze and anticipates "some small staff reductions" as it looks to manage costs.
"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," wrote in the memo. This move came after Disney missed Wall Street estimates for quarterly earnings on Tuesday as the entertainment giant racked up more losses from its push into streaming video, which it refers to as its direct-to-consumer (DTC) business. Shares of the company fell more than 13 percent on Wednesday following its results. Wall Street analysts voiced concern about Disney's escalating streaming costs, with MoffettNathanson analyst Michael Nathanson observing, in a note earlier this week, "the company has to prove that their pivot to DTC will be worth the investment price that is currently being paid."