Disney is working on a cost-cutting plan that will have an impact on budgets, staffing structures and hiring as part of a broader mission to achieve Disney+ profitability by 2024.

The company is reviewing its content and marketing budgets and has put a freeze on hiring except for positions that are designated as critical. Staff numbers will also be reduced in some areas and business travel limited. 

These changes come in the wake of last week’s Q4 and full-year financial report, which showed annual revenue up by 23% to US$82.7 billion. For the quarter, Disney+ subscribers grew by 39% to 164.2 million, boosting the DTC category’s revenue by 8% to US$4.9 billion. These gains put Disney+ on pace to pull even with main rival Netflix, which finished its Q3 (on September 30) with around 223 million subscribers. Both companies are rolling out AVOD tiers in an effort to bolster subscriptions and revenue. 

As consolidation and other economic pressures take hold globally, cost-saving measures are being instituted across the industry. Warner Bros. Discovery is aiming to save US$3 billion in post-merger spending, an effort that has contributed to significant cuts across its kids business, creating ripple effects in the industry. Meanwhile, fellow heavyweight Netflix has also made some reductions to its animation operations, including laying off 30 staffers from its animated films team in September.