Disney has been facing deep water troubles for a long time. When Bob Iger gave the reins in the hands of Bob Chapek, the world was in the middle of a pandemic. But, due to the increasing demand for streaming services, Disney’s boat floated. However, since Bob Chapek stepped in as a CEO, the company has been embroiled in various controversies.
Back in 2021, Scarlett Johansson sued the company for the loss of money due to the ‘Black Widow’ release. Also, it received a heavy backlash for the company’s stance on Florida’s “Don’t Say Gay” bill formerly known as Parental Rights in Education bill. Recently, Disney also was planning for layoffs and freezing hiring due to heavy losses. Amidst all this chaos, Chapek is stepping down as the CEO of the company.
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Bob Iger Returns As The CEO Of Disney Replacing Bob Chapek
On November 20th, 2022, Disney decided to replace Bob Chapek with the former CEO of the company, Bob Iger. Iger stepped down from the designation and handed over the reins to Bob Chapek. Bob Iger was still placed as the executive chairman of the company and served as a partner at Thrive Capital, a venture capital initiative.
Disney board chair Susan Arnold said in a statement, “We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic. The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”
Bob Chapek had his contract renewed in June. Though Bob Iger is happy to return, his tenure will be limited to two years. During his tenure, the company will also decide on the successor of Iger. The board said that Bob Iger “has agreed to serve as Disney’s CEO for two years, with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”
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The Company Faced A Huge Loss During The Recent Quarter
In the Quarter 3 report, Disney and its other companies—Hulu and ESPN+ gained 152.1 million subscribers. However, the company faced a disastrous loss of nearly $1.6 billion. The revenue that the company incurred per user also diminished by 5%.
Looking at the loss, now-former CEO Bob Chapek warned the employees of potential mass layoffs and a hiring freeze. He released a memo in which he 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.”
He continued, “As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review.”
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