Bob Iger announces restructurings, promotions and layoffs at Disney

Bob Iger announces restructurings, promotions and layoffs at Disney




Disney announced on Wednesday (8/2) a complete restructuring of the company. With the changes, the company’s business will be grouped into three main segments: Entertainment, ESPN and Parks, Experiences and Products.

The goal is to return decision-making power to Disney’s “world-class creative team” and its “unmatched brands and franchises,” CEO Bob Iger said on a shareholder conference call, referring to the concentration of decisions in the era. of the CEO. Chapek in a bureaucratic body, DMED (Disney Media & Entertainment Distribution), which made decisions about what to release in theaters or on streaming without listening to the executives of the respective areas.

The reorganization is a key element of a transformation that he says will also help streamline the streaming business for sustained growth and profitability, as well as cost savings in a world of heightened competition and global economic challenges.

The creation of the new Disney Entertainment unit will cover TV and film and will be led by Dana Walden and Alan Bergman.

It solidifies the rise of Walden, who was named president of Disney General Entertainment Content following the departure of Peter Rice last year. The executive came to Disney from Fox following its acquisition of the company he worked for, and has been instrumental in a number of big Disney wins since taking over, including the Best Documentary Oscar for “Summer of Soul.” and the launch of such series as ‘Abbott Elementary’, ‘Only Murders in the Building’, ‘Dopesick’ and ‘The Kardashians’.

Bergman, in turn, worked at the company for 27 years and was promoted to president of Disney Studios Content in 2020, when he became responsible for overseeing the releases of all of the conglomerate’s films. Previously, he presided over the Walt Disney Studios for 14 years.

They will now work together to determine which films, series and assorted programs will be produced by Disney.

In parallel with this content split, ESPN will continue to focus on the live sports segment independently. With linear networks in decline and the cost of sports rights rising, the channel has come under fire from a number of investors, but Iger noted that making ESPN a standalone business unit is not a step toward selling the business. .

Ultimately, Parks, Experiences and Products will continue as a separate unit as they always have, with less impact than other sectors. However, that division will also be subject to Iger’s planned downsizing of the entire company.

To cut expenses, Iger gave bad news to his employees, revealing plans to lay off no fewer than 7,000 people – or 4% of the company’s total workforce – and cut more than $5.5 billion (28.6 billion reais) in costs. “I don’t take this decision lightly,” she said of the cuts.

“This reorganization will result in a more cost-effective and coordinated approach to our operations,” he said. “We are committed to operating efficiently, especially in a challenging environment.”

The restructuring announcement was the first made by Bob Iger since he returned to helm the company last November. As a result of his remarks, Disney shares rose 8% to $120.77 in aftermarket trading.

Source: Terra

You may also like