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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.
Share the love!
Robert Zapata
Sunday 13th of November 2022
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.....
Denise
Sunday 13th of November 2022
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
Aaron
Saturday 12th of November 2022
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
Rafeal S
Saturday 12th of November 2022
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
Ronald Pavlacka
Saturday 12th of November 2022
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.