It's been a tough week for Walt Disney Co.
First, Florida Gov. Ron DeSantis (R) won his re-election with a stunning victory on Tuesday. Then, Disney's corporate earnings disappointed Wall Street, sending its stock to record lows. The company is said to be planning cuts, a targeted hiring freeze, as well as restrictions on employees' travel.
In a letter sent to the top executives of the company, published by various news media, Disney CEO Bob Chapek stated that the austerity measures would take time and would be “difficult” but necessary.
“I am completely aware that this is going to be a challenging process for a lot of your team members and you. We'll be faced with difficult decisions. This is exactly the kind of leadership that is required. I want to thank you for your willingness to step up in this crucial moment,” he wrote.
“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.”
He added that Disney will also conduct a “rigorous review of the company's content and marketing spending,” with all the work being overseen by the newly created “cost structure task force” composed of Chapek, CFO Christina McCarthy, and general counsel Horacio Gutierrez.
It is not clear what number of workers Disney will be cut and in what areas of the business they will be coming from.
Breitbart news reported that Disney shares plummeted this week following the release of quarterly results that did not meet expectations, placing its future financial viability in question. Disney disclosed that it had lost a staggering sum of $1.5 billion from its streaming entertainment services, as it looks to develop Disney+ along with Hulu in order to keep up in the market with Netflix and other streaming services.
Disney chose to engage in a political dispute with Governor DeSantis earlier in the year over his State's Parental Rights in Education Law that bans the teaching of gender and sexuality ideology and transgenderism to children from kindergarten to the third grade.
Responding to pressure from a tiny group of employees with radical views, Chapek condemned the law and vowed that Disney will support radical LGBTQ action in the future.
This year shares of Disney have plunged 62 percent.