First, on Tuesday, Florida Governor Ron DeSantis (R) easily won reelection. After that, Wall Street was let down by Disney’s corporate earnings, which caused its stock to plunge to new lows. According to recent reports, the multinational entertainment company is preparing to curtail employee travel and implement a targeted hiring freeze.
He wrote, “I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time,”
“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 “rigorous review of the company’s content and marketing spending,” with all of these efforts being overseen by newly formed “cost structure task force” comprised of Chapek, CFO Christina McCarthy, and general counsel Horacio Gutierrez.
Shares of the Walt Disney Co. plummeted late Tuesday and into early Wednesday to their lowest level in nearly a decade as concerns mount over the company’s profitability and wild spending habits on Disney+ and other streaming services. https://t.co/MiQhdlv97F— Breitbart News (@BreitbartNews) November 9, 2022
It is uncertain how many employees Disney will let go and from which departments they will originate.
Disney’s stock crashed this week after the firm disclosed fiscal fourth-quarter profits that fell short of forecasts, casting doubt on the business’s future profitability. In an effort to compete with Netflix and other streaming entertainment providers, Disney announced that it lost an astounding $1.5 billion on its Disney+ and Hulu streaming entertainment services.
Disney and Gov. DeSantis got into a political argument earlier this year over the state’s Parental Rights in Education Law, which forbids the teaching of transgenderism and other sexuality and gender ideologies to kindergarten through third grade students.
In response to pressure from a limited number of radicalized staff members, Chapek denounced the rule and declared that moving forward, Disney would support radical LGBTQ activity.
Shares of Disney have dropped a staggering 62 percent so far this year.