Disney’s Bob Iger has been on the job for just a day and he has wasted little time in making his return to the company felt.
On Monday, Iger announced a major corporate restructuring at the Walt Disney Co.’s media and entertainment distribution group (DMED), beginning with the firing of the division’s top executive who was seen as the right-hand man to former CEO Bob Chapek.
The announcement represents the first step in what will likely be an elaborate and complex un-doing of Chapek’s tenure as CEO. Chapek created the DMED group and placed Kareem Daniel at the head of the division.
Iger said Daniel is leaving the company in a memo to DMED employees obtained by multiple news outlets late Monday.
“Over the coming weeks, we will begin implementing organizational and operating changes within the company,” Iger wrote.
“It is my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are. As you know, this is a time of enormous change and challenges in our industry, and our work will also focus on creating a more efficient and cost-effective structure.”
Iger said he has asked his top executives “to design of a new structure that puts more decision-making back in the hands of our creative teams and rationalizes costs.”
“Our goal is to have the new structure in place in the coming months,” he said.
“Without question, elements of DMED will remain, but I fundamentally believe that storytelling is what fuels this company, and it belongs at the center of how we organize our businesses. This is a moment of great change and opportunity for our company as we begin our second century.”
As Breitbart New reported, Disney abruptly fired CEO Bob Chapek on Sunday following a disastrous quarterly earning reports that caused shares of the company to nosedive.
Analysts are predicting Iger will need to act fast to fix the company’s profitability outlook by slashing spending, especially in Disney’s streaming entertainment division.