Should Disney Employees Prepare for Another Round of Layoffs?

Yesterday evening, the Walt Disney Company released its Q4 Earnings Report for the end of the 2022 fiscal year and held its yearly Quarterly Earnings Call to discuss the revenue figures.

It’s no secret that Disney’s finances have been rising, and now that the Earnings Report has been released, Guests can pinpoint where and why.

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Specifically, we can see that the United States-based sector of Disney Parks, Experiences, and Products experienced income growth but that the development was “partially offset” by increasing “operations support” expenses and “cost inflation.”

When asked about impacts on Disney’s finances, such as the rising costs of expenses and inflation, the Chief Financial Officer gave a troubling response, as CNBC Media Reporter Alex Sherman points out in his tweet.

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

 

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The phrase “meaningful efficiencies” has ominous implications for employees, whether they’re a Cast Member or not, currently working for the Walt Disney Company.

As costs increase for the Walt Disney Company and its numerous divisions, the company is actively looking for ways to cut costs elsewhere. While Chief Financial Officer Christine McCarthy doesn’t outright discuss a massive layoff, that doesn’t mean one isn’t coming. After all, specifically avoiding language discussing planned layoffs is a strategy many companies use during a time like this.

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Twitter user David Ebright (@RealDavidEbright) replies, writing, “So less cast members that are already paid next to nothing. Seems like more cutbacks for the guest experience,” and he’s not the only one who feels this way.

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Many feel that Cast Members working at a Disney Park are underpaid for the emotional and physical labor they provide, all for the benefit of visiting Guests.

If the Walt Disney Company has truly planned for massive layoffs, much of that personal touch will be lost, and public relations may suffer.

That being said, these are only speculations as nothing has been confirmed. Only time will tell what’s in store for the Walt Disney Company and its employees.