Disney’s Iger Reveals He Doesn’t Want to Stay on as CEO Much Longer

Disney Executive Chairman Bob Iger attends the Exclusive 100-Minute Sneak Peek of Peter Jackson's "The Beatles: Get Back" at El Capitan Theatre in Hollywood, Calif., on Nov. 18, 2021. (Charley Gallay/Getty Images for Disney)

Disney CEO Bob Iger said he doesn’t want to stay on as the company’s chief executive any longer than two years, with his remarks coming as the company announced it would cut $5.5 billion in costs and slash 7,000 jobs.

Iger told CNBC’s “Squawk on the Street“ on Thursday that he plans to to stay for the duration of his contract but no longer.

“My plan is to stay here for two years, that’s what my contract says, that was my agreement with the board, and that is my preference,” Iger told the outlet.

Iger, who previously served as Disney CEO and came out of retirement to take on the job once again, said that one of his aims for his remaining time at the helm is to help the Disney board “succeed at succession.”

Disney’s board ousted Bob Chapek as CEO in November 2022 and announced Iger’s reascent to the top spot. At the time, Disney said Iger would “set the strategic direction for renewed growth” for the company and work closely with its board on “developing a successor to lead the company at the completion of his term.”

Chapek, who previously served as the chairman of Disney Parks, Experiences, and Products, took over as Disney CEO in February 2020.

Disney Job Cuts

Iger’s intent not to stay on as Disney’s chief executive beyond his contract term came on the heels of an earnings call a day prior in which he revealed that some 7,000 employees would be laid off as the company looks to cut expenses and chase profitability.

The layoffs are part of a broader reorganization that includes a strategy to cut costs by $5.5 billion.

“This reorganization will result in a more cost-effective, coordinated, and streamlined approach to our operations, and we are committed to running our business more efficiently, especially in a challenging economic environment,” Iger said during the earnings call.

The job cuts amount to roughly 3 percent of Disney’s total global workforce of around 220,000 employees, according to an October securities filing.

Iger said on the call that the decision to lay off a substantial number of employees wasn’t taken lightly but was “necessary to address the challenges we’re facing today.”

Disney+ lost a net 2.4 million subscribers in the last three months of 2022, which was the streaming service’s first decline since launching in late 2019, according to the company’s earnings report for the first quarter of fiscal 2023 (pdf).

Streaming losses declined somewhat in the first quarter ($1.1 billion) compared to the fourth quarter of fiscal 2022 ($1.5 billion).

Bob Chapek of Disney talks during the Opening Ceremony of the Invictus Games Orlando 2016 at ESPN Wide World of Sports in Orlando, Fla., on May 8, 2016. (Chris Jackson/Getty Images for Invictus)

Still, the company’s overall quarterly earnings beat Wall Street forecasts, driven by a boost in revenue at Disney’s theme parks. Disney’s Parks, Experiences and Products group saw its revenue jump 21 percent to $8.7 billion while operating income grew 25 percent to $3.1 billion.

Overall, Disney posted revenue of $23.51 billion in the first quarter, up 8 percent from the prior quarter. That beat estimates of $23.37 billion.

In announcing the earnings, Iger said Disney intends to reorganize into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products.

“After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises,” Iger said.

Woke Focus?

There has been speculation whether Iger’s return to the helm of Disney might mean that the company would lessen its focus on left-wing and LGBT politics.

The number of Disney films prominently featuring LGBT themes doubled under Chapek, as The Epoch Times previously reported.

At a town hall in December, Iger told employees he didn’t like the company being “embroiled in controversy.”

“It can be distracting, and it can have a negative impact on the company. And to the extent that I can work to quiet things down, I’m going to do that,” Iger said.

At the same time, Iger made a point to reaffirm his commitment to the company’s “core values” of “inclusion and acceptance and tolerance.”

Iger also said that he felt “sorry” that Disney got dragged into a battle with Florida lawmakers over a ban on sex and gender discussions in early elementary classrooms.

Disney became embroiled in controversy when it pushed back against the introduction of Florida’s Parental Rights In Education bill that bans discussing sexual orientation or gender identity in kindergarten through third grade.

In March 2022, Chapek said that Disney leaders were opposed to the bill “from the outset, but we chose not to take a public position on it because we thought we could be more effective working behind-the-scenes, engaging directly with lawmakers.”

After Disney pushed to repeal the law, Florida Gov. Ron DeSantis signed a bill into law that seeks to end special privileges for the entertainment company.

“You’re a corporation based in Burbank, California, and you’re going to martial your economic might to attack the parents of my state? We view that as a provocation, and we’re going to fight back against that,” DeSantis said during an event at a local school in April 2022.

The bill called for the elimination of Reedy Creek Improvement District’s special tax status by June 1, 2023, which would reverse certain special privileges Disney enjoys.

But that bill left open questions about Disney’s bond debt of nearly a billion dollars, with the possibility that taxpayers of Osceola and Orange counties, where the district is located, could be liable.

So Florida lawmakers have moved to introduce new legislation in recent weeks that would allow the state to tax Disney for possible road projects outside the district’s boundaries.

This would ensure that Disney, rather than taxpayers, pays the $700 million in the company’s unsecured debt.

Disney is one of the largest employers in the state and Walt Disney World is one of the world’s most popular theme park attractions.

Dan Berger contributed to this report.