After the latest earning report fell short of expectations and stocks plummeted, Chapek’s solution is to cut back on new employees.
Earnings Report
The recent Disney (DIS) quarterly earnings report came in with a giant thud as the corporation reported huge losses in key areas. Many prominent stock market analysts are now calling for Disney CEO Bob Chapek to be fired. You can read more about this HERE.
Analysts hoped that the numbers Disney promoted for streaming and media would rise significantly, but that has not occurred. The stock price is now at a low that has not been seen consistently since August of 2014.
Disney Stock Crashes
At the time of this article, Disney stock has dropped more than 12% in a single day. Year to date, DIS stock has dropped nearly 44%.
CEO Bob Iger was beloved by Wall Street as he used acquisition strategy to purchase businesses that included Pixar, Marvel and Star Wars. Under his leadership, the company’s stock grew from around $23 per share to more than $150 per share.
Chapek Reacts
Chapek is planning to take a number of steps in reaction to floundering earnings. Per a Disney email, Chapek states that Disney has taken a rigorous review of the company’s content and marketing spending working with their content leaders and their teams. Then, he states that Disney will not sacrifice quality or the strength of our unrivaled synergy machine.
Then, he makes a bold move in announcing limiting headcount additions through a hiring freeze. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other positions are on hold.”
He also states that there is room for “improved efficiency as well as an opportunity to transform the organization to be more nimble.”
Bob Chapek just issued a hiring freeze.
What are your thoughts on Chapek’s latest decision? Is it a sound business decision or is he grasping for straws? Please share your thoughts with us on our Facebook Page.
The guest are always right off hand….I’m a cast member at Textile Services and I ride the bus to and from work everyday. Must of the guest I run into always ask me questions about the service and anything thats deals with the parks. Most of the guest talks about why….they change this and that and there answer is we are not coming back until they fix things and but everything back the way it use to be… I use to come here with my daughters once a year and it breaks my heart that everything has changed to the worst I have ever seen…..
Get rid of chapek he has destroyed disney no more magic high prices no staff but let’s cut more staff when are you going to wake up chapek is a one man wrecking ball FIRE him before it’s to Late
Disney needs to step back and listen to the people that keep that place running the visitors and FIRE that CEO’S you know what get him out of there start cleaning that place up and I mean fresh paint refurbish rides buildings etc amd make it magical again
Disney should listen b 4 it’s to late I waited in line at paridise peir hotel 40 min 4 a copy of room key another guest thought that I cut line and tried to fight me the poor people who work the front desk everybody was just as stressed and in the park this is not the happiest place on earth its the sadist most expensive place on earth what would Walt do??? He would say bob YOUR Fired have a nice day
Chapel (and others), have killed the goose that laid the golden eggs. Greed for $ and power destroys. Walt knew the real value in ANY business are awesome employees. Take care of them and they will take care of your customers. Time is running out fast as customers run to alternate entertainment venues. See you there Chapek.
I have a radical idea for good old BOB…..cut his own salary by half!! The parks are already minimally staffed compared to times before Covid. This guy is terrible. He doesn’t have a creative bone in his body and he is the head of what is supposed to be one of the most creative companies in the world. He’s got to go!
We are almost EXACTLY in the same circumstances as you and feel the same way.
I don’t think Iger was great either…but he was better than Chapek. Chapek is totally incompetent. I’m a DVC member, an annual passholder, a stockholder, and, of course, a lifelong Disney fan. We usually go to WDW 4 to 6 times a year and spend a fortune. When I’m looking cut back trips, it has to be bad. If Chapek gets paid what he’s worth, that’ll leave plenty of $$$ to hire cast members who actually help enhance guests’ experience.
And Chapek is any better??
This is not him. This has been happening since Iger was in charge, who no one wants to admit, was the the greediest POS on this planet. He rose prices and basically told Florida’s residents that he does not care if he raises the prices of annual passes for them and doesn’t care about their discount. They will like it and they will pay regardless. Also iger takes 100% ownership of disney plus naming it his baby when it released and the platform is tanking. Doesn’t sound like anyone’s fault but a bad legacy by a bad guy.
On the money!
My visit last week shows them understaffed as they have cut housekeeping and restuarant staff back significantly. Typical corporate greed….pay the top more, chip away the value and overwork the staff. Time to go Bob…..
Was there a week after Ian. Place was shortstaffed then.
Hiring freeze, while everyone in the company is overworked, understaffed and under paid, but he gets to keep his 8 figure salary?? When will disney finally get rid of him? He is destroying the company.
Totally agree!
First get rid of Genie plus and by ring back fast passes even for a charge. At least it worked well, you don’t hVe to get up at 7 am, you could make changes without losing what you have and it can be made in advance. Don’t constantly add higher prices for everything. There were always lines but nothing like they are now. Really don’t want to take the kids as it’s so much for them to spend all day in line. Not the fun it used to be. I’m DVC so will make trips without kids and make them resort stays.
Chapek has not done ANYTHING but raise prices and take away so much of the magic
I did not mean to add that emoji!
Wow. Let’s implement a hiring freeze while we’re struggling to staff everything, as is. ♀️
Should take his raise away from him. He putting a freeze on hiring and they are short handed already.
Recently returned from Disney Florida.
Family consensus: 2 things must happen if we ever go back. 1st is complete all construction projects and remove the ugly green walls. 2nd is get rid of Chapek and bring back the magic!
Leave Bob! You have proven yourself incapable of running a company with Disney’s history and culture! Ruining, yes. Running, NO!
i know cut him out you will save alot of money
He is single handedly destroying the company.