Bob Iger has a difficult path ahead of him to repair the company he helped define—now that its former CEO has been removed.
Key Details
- The business world was surprised Sunday night by the ousting of Disney CEO Bob Chapek for former Disney CEO Bob Iger, who retired from the company in June 2020 after 15 years of successful leadership.
- Chapek’s leadership was upended by the Board of Directors campaigning to remove him from leadership for months as a result of a negative report of $4 billion in losses this year—$1.5 billion in just the past quarter.
- The Disney corporation is in need of a change of direction, and Iger has a long road ahead of him over the next two years as he tries to turn the company around.
- The company’s stock has remained high all week after the decision, with investors breathing a sigh of relief following Chapek’s ousting.
Why it’s News
Bob Iger is walking into a mess as the company he left is facing serious structural issues, Yahoo Life senior reporter Alexandra Canal reports. The company is facing several declining divisions including ESPN and Disney+, which are both hemorrhaging money at the moment. It is unclear how Iger will be able to turn the company around.
Iger will reportedly host an employee town hall on Monday to discuss the overall direction and future of the Disney corporation.
“Earlier this week, Iger gave investors a taste of what seems to be the first step of that strategy—firing Kareem Daniel and restructuring Disney’s Media and Entertainment Distribution division. DMED was one of Chapek’s first big swings as chief executive, but the reorganization was categorized as a controversial move that upset longtime veterans and reportedly confused workers,” says Yahoo Life.
Having Bob Iger returns also threatens his own reputation if he isn’t able to turn the company around and bring the bleeding under control. It will also leave the company in an unenviable position in two years when Iger retires again and make it harder for the next CEO to make decisions in the aftermath of the company’s most well-respected leader.
Notable Quote
“I really thought Iger was sort of brilliant for getting Disney+ launched, getting all the subs, and then stepping aside and letting someone else be responsible for making it profitable, which was always going to be the harder job. Now he owns it again, so he’s [putting] his own legacy a bit at risk here,” says media analyst Doug Cruetz.
