According to CEO Bob Chapek’s memo, Disney is planning hiring freezes, layoffs, and cost cuts

CEO Bob Chapek’s memo: In an internal memo sent to administrators, Disney plans a targeted hiring freeze and several layoffs.

“We are limiting employee growth through target hiring freezes,” CEO Bob Chapek said in a memo to department heads sent Friday and obtained by CNBC. “Recruitment for a fraction of the most important positions driving business will continue, but all other roles will be suspended. Your segment leaders and HR team have more specific information about how this will apply to your team.”

He added, “As we go through this assessment process, we will review each job type and workforce to find savings, and we anticipate some downsizing as part of that review.” Disney has about 190,000 employees.

apek also told executives that business trips should only be limit to essential travel. Meetings should be hold virtually where possible, he wrote in the memo.

Disney is also setting up a “cost structure task force” consisting of CFO Christine McCarthy, general counsel Horacio Gutierrez, and Chapek.

“I am fully aware that this would be a difficult process for many of you also your team,” Chapek wrote. “We had to make a difficult and uncomfortable decision. But that’s what leadership needs, and I thank you in advance for your commitment at this important time.”

The move came days after Disney reported disappointing quarterly results. Shares of the company fell sharply on Wednesday, hitting a fresh 52-week low before recovering at the end of the week.

McCarthy said on Disney’s earnings call Tuesday that the company was looking at ways to cut costs.

“We are currently actively evaluating our cost base and looking for meaningful efficiencies,” he said. “Some of these will generate short-term savings, while others will generate long-term structural benefits.”