The Walt Disney Co. is experiencing a major and very unexpected corporate shake-up as current CEO Bob Chapek steps down and is replaced by his predecessor, Bob Iger.
The news was revealed by Disney’s board of directors on Sunday. This change is effective immediately, as Iger returns to a position he only vacated in 2020. Iger’s new contract will see him serve as CEO for the next two years.
“We thank Bob Chapek for his service to Disney throughout his long career, including navigating the company through the unprecedented challenges of the pandemic,” board chair Susan Arnold said in a statement. “The Board has concluded that, as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this crucial period.”
LEFT: BOB CHAPEK, RIGHT: BOB IGER (IMAGE CREDITS: DAVID LIVINGSTON/GETTY IMAGES AND SAMIR HUSSEIN/WIREIMAGE/GETTY)
The news comes just days after Chapek notified company executives of a new series of cost-cutting measures, including layoffs, targeted hiring freezes and travel limits. Disney’s recent quarterly earnings report showed troubling signs for the company, including a loss of nearly $1.5 billion in its streaming division, which sent the company’s stock price down to a new low of two years
“I am fully aware that it will be a difficult process for many of you and your teams,” Chapek said. “We will have to make difficult and uncomfortable decisions. But that is what leadership requires, and I thank you in advance for stepping up at this important time. Our company has overcome many challenges in our 100-year history, and I do not have no doubt that we will achieve our goals and create a company that is more agile and more adapted to the environment of tomorrow.”
Iger previously served as CEO of The Walt Disney Co. from 2005 to 2020. During his tenure, Iger oversaw a period of tremendous expansion for the company, including the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox, as well as the launch of from the Disney+ streaming service. Chapek previously served as Head of Parks, Experiences and Products and as President of Walt Disney Parks and Resorts before being promoted to CEO in February 2020.
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Chapek’s short time on the job has been marked by several pandemic-related challenges and a degree of turmoil, starting with a major spat between Iger and Chapek. Chapek also drew criticism for his handling of the pay dispute between the studio and Black Widow Scarlett Johansson, as well as his initial response to Florida’s controversial “Don’t Say Gay” bill.
“I am extremely optimistic about the future of this great company and am very excited that the Board has asked me to return as CEO,” Iger said in a statement. “Disney and its unparalleled brands and franchises hold a special place in the hearts of so many people around the world, especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to once again lead this extraordinary team, with a clear mission focused on creative excellence to inspire generations through bold and unparalleled storytelling.”
It is clear that Disney’s board hopes to return to the stability and growth marked by Iger’s previous tenure as CEO. However, the company continues to face major economic headwinds and brutal competition in the streaming market, so it remains to be seen whether Chapek’s second stint will be successful.
Do you think Disney’s board made the right call? Let us know your thoughts in the comments below.
Jesse is a friendly staff writer for IGN. Allow him to lend a machete to your intellectual thicket by following @jschedeen on Twitter.