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Bob Iger is back in the driver’s seat at Disney. Less than two months after he resigned as chief executive of the Mouse House, Iger, who currently holds the title of executive chairman, is retaking the helm, according to a new report. The celebrated exec told The New York Times on Sunday that he stepped …
Bob Iger is back in the driver’s seat at Disney.
Less than two months after he resigned as chief executive of the Mouse House, Iger, who currently holds the title of executive chairman, is retaking the helm, according to a new report.
The celebrated exec told The New York Times on Sunday that he stepped up, after handing the CEO reins to Bob Chapek, the former head of the parks and resorts business, because Disney is being crushed by the impact of the coronavirus.
“A crisis of this magnitude, and its impact on Disney, would necessarily result in my actively helping Bob [Chapek] and the company contend with it, particularly since I ran the company for 15 years!” Iger said in an email to The Times.
In the weeks following his Feb. 25 departure, Iger saw the pandemic force the closure of all of Disney’s theme parks and cruise ships. Analysts estimated that the Mouse House has lost $500 million just from closing its parks through March alone.
While Disney+, the company’s nascent streaming service appears to be a bright spot, boasting more than 50 million paid subscribers within five months of launch, the company has started massive layoffs.
Walt Disney World in Florida said over the weekend it is furloughing 43,000 employees beginning April 19 and Disneyland in California is furloughing 30,000 workers, while an unspecified number of cruiseline, movie production and corporate employees will also be laid off. Disney also enacted pay cuts with Iger forgoing his salary during the pandemic.
MoffettNathanson analyst Michael Nathanson estimated that Disney theme parks in the US could face a potential $3.4 billion revenue loss this year due to ongoing coronavirus closures and an ensuing recession.
The Disney-owned ESPN has also been hit hard as live sporting events have been suspended, and with movie theaters closed, Disney was forced to push back the premier of its big ticket blockbusters, such as “Mulan,” Marvel’s “Black Widow” and Dwayne Johnson’s “Jungle Cruise,” until after the most profitable summer season.
In order to keep costs down, Iger said he anticipates ending “expensive old-school television practices” like producing pilots for shows that may not air, and advertising upfront presentations — all of which were canceled this spring, the report said.
Disney is also expected to lay off more employees and downsize office space, but Iger noted that staffing decisions will be made by Chapek, not him.
