The Walt Disney Company seems to have been put through the wringer in recent months, particularly when it comes to public opinion — and even though the company’s earnings this year say otherwise, there was one tidbit from Disney’s CFO that might be a red flag!
During the recent quarterly earnings call, Walt Disney Company Chief Financial Officer Christine McCarthy (who was answering questions alongside the much-maligned current Disney CEO Bob Chapek) mentioned some focuses going forward that have Disney fans — and, most likely, Disney employees — spooked.
When speaking about Disney’s plans for cutbacks, CFO Christine McCarthy used the term “meaningful efficiencies”.
According to reporter Alex Sherman in the Tweet shown below, there are a few factors indicating that this term suggests Disney plans on starting some layoffs. First of all, according to Sherman, McCarthy “says she’s actively examining the company’s cost base.”
In addition, “a lot of Disney’s peers are cutting jobs right now”. And finally, “McCarthy doesn’t specifically mention job cuts, but the language she used often means that”.
Disney looking for "meaningful efficiencies," CFO Christine McCarthy warns. She says she's actively examining the company's cost base.
A lot of Disney's peers are cutting jobs right now. McCarthy doesn't specifically mention job cuts, but the language she used often means that
— Alex Sherman (@sherman4949) November 8, 2022
As in any company, cutbacks are of course a concern for Disney employees — especially since, in Walt Disney World Resort, there is an ongoing and increasingly-tense wage negotiation happening between Disney World and the local union that represents some Disney employees.
Right now, Disney World employees are reportedly earning less than the minimum wage that is needed to actually make a living that does not involve struggling to afford essentials like food, housing, and medical care. Many Cast Members are leaving Disney these days for other jobs; if layoffs are indeed on the way, then the exodus that has been happening from Disney will be particularly appropriate.
This exodus has also seemed appropriate due to the number of bad Disney Parks workdays that Cast Members seem to experience at the hands of Disneyland, Disney World, or Disneyland Paris Guests these days, especially when combined with low wages and “abusive boyfriend” behavior from their employer — so if layoffs are indeed coming from Disney headquarters, and some Cast Members will lose their jobs, it may be less than disappointing news to some of them!
Do you think that the Walt Disney Company is going to include layoffs in its plan to cut back on spending? Have you been pleased with your recent Disney experiences, whether they have been content like Disney+ shows or days in the Disney Parks, and do you prefer former Disney CEO Bob Iger or the current CEO Bob Chapek?