Disney will begin to initiate layoffs, which will implement a targeted hiring freeze and limit the company’s travel as a part of the goal to cut costs. The huge decision was announced to leadership Friday. In a memo obtained by Variety that was sent to top exes Friday afternoon.

Disney’s Ceo Bob Chapek 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.”

Chapek additionally 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” which will include CFO Christina McCarthy and general counsel Horacio Gutierrez.

This news follows Disney’s presentation of the quarterly earnings results, which were not favorable for the company and cause their stock to drop to the lowest point in over two years. Disney reported a 1.47 billion operating loss for its segment for the quarter that ended Oct. 1, 2022, around $800 million more than the year-ago quarter despite Disney +’s add support description drop succeeding expectations. As a result of higher losses at Disney+ and ESPN+ and lower results at Hulu, revenue increased by 8% to $4.9 billion. Meanwhile, revenue for Disney TV and broadcast has dropped 5% in the quarter.

In the Friday memo, CEO Chapek, mentions Cost management efforts are “occurring against a backdrop of economic uncertainty” that is affecting all of Hollywood.

Variety has acquired Disney’s full memo, which you can read here!