Disney CFO Christine McCarthy had an interesting – if not ominous – response when asked about rising costs impacting Disney’s finances. While discussing the company’s budgets and costs, McCarthy said Disney will look for “meaningful efficiencies.”
One CNBC reporter warns that McCarthy’s choice of words could be worrisome.
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
Summarized, McCarthy will look for ways to save Disney money while costs increase around their many divisions. She didn’t specifically mention layoffs, but that is a tactic many other companies are using or considering at this time.
Disney announced enormous profits and reported 2022 fiscal revenue growth of 22%. But, their released numbers fell short of analyst expectations, which resulted in the stock price dropping after hours.
Disney is already using the Theme Park Reservation system to manage staffing around its theme parks. Some guests have complained that this reduction in staffing has produced longer waits, more attraction downtime, and worse maintenance. Adding potential layoffs to the mix might further compound Disney’s current issues, and open the door further to competitors willing to invest at this time.