Disney plans to cut jobs

The company plans to freeze hiring, layoff employees and reduce travel costs

After reviewing its spending costs, Disney will likely carry out a round of layoffs and opt for a targeted hiring freeze.

In a leaked memo published by CNBC, CEO Bob Chapek shared the cost management efforts to make the company profitable moving forward. The company has set up a cost structure taskforce comprising executive officers that will "make the critical big picture decisions."

Once the task force reviews the company's current spending, there is a high possibility of staff reductions. For now, the memo says, "hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold."

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Despite a growing subscriber base, Disney is still losing money on its direct-to-consumer business. Hence the company is not only planning for job cuts but has also directed the employees to attend meetings and conferences virtually instead of traveling to the locations.

As per the memo, the CEO said, "business travel should now be limited to essential trips only".

With these future plans, Chapek has predicted that Disney will become profitable by 2024.