Bob Iger, the ex-CEO of Disney or The Walt Disney Company, returned to the company as the CEO after the departure of Bob Chapek who handled the company from 2020 to 2022. The return of Bob Iger was admired all over the world as he offered some of the most engaging developments when he was CEO. This effect was also seen in the share market as on Monday, due to the return of Bob Iger, Disney shares saw a significant increase in value. On the day of his return, Iger made a major move by firing Kareem Daniel, the chairman of the Media and Entertainment Distribution (DMED) division. The reason behind this layoff was that Iger wanted to completely restructure Disney's Media and Entertainment Distribution (DMED) division as it produced some of the most questionable and lackluster products during the past two years. DMED division was the first division that was touched by Bob Chapek when he was the CEO of the company.
Bob Chapek was a controversial name for being Disney's CEO, as when he was elected to the position, the majority of the people were shocked. Bob Iger was a beloved executive for Disney fans. Hence, when Bob Chapek was appointed to his position, many felt confused. But the departure of Bob Chapek was even more surprising as there were no such hints that the company is planning on releasing him from his position as the company’s CEO. Just five months back, the board of directors had agreed unanimously in favor of further extending Chapek’s contract as the company’s CEO. Recently, Iger was asked if he missed being the CEO of Disney or not, to which he simply replied that he did not. Chapek was criticized throughout his time as the company’s CEO for his creative decisions. So many were hoping that Chapek would not last long as the company’s CEO, but his departure happened very quickly and all of a sudden.
After firing Kareem Daniel, Bob Iger sent a memo to the Disney employees where he stated that over the coming weeks, he has planned several organizational and operating changes that he will be applying to the company. He further stated that this is a tough time for the company and the market for which there is a need to implement a new structure that is more efficient and cost-effective, which will be implemented over the coming months. In his memo, he also explained his decision to restructure the DMED department. He said that DMED will also be restored as the company will be focusing more on the storytelling aspect which has brought Disney to its current position. Iger said that he wants to keep storytelling as the core of Disney’s operations.
However, many are also saying that Iger’s return as the CEO of Disney will have downsides in the long term. According to Wall Street analysts, the decision to appoint Iger as the CEO of Disney will come with its risks. Many said that Iger has some massive plans for restructuring the core parts of the company, which can go either way.