CEO and Chairman of The Walt Disney Company Bob Iger and Mickey Mouse look on before ringing the opening bell at the New York Stock Exchange, November 27, 2017 in New York City.
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Disney CEO Bob Iger said Monday during his first town hall since returning to the company that he won’t remove the hiring freeze while it reassesses its cost structure.
Iger started the town hall by quoting a song from the musical “Hamilton” that read, “There is no more the status quo. But the sun shines and the world keeps spinning,” according to sources who heard the town hall ask to stay. Anonymous because the event was private.
It was Iger’s first town hall with a staff since Disney abruptly announced last week that he would replace Bob Chapek, who had been in the position for less than three years. Under Chapek, Disney faced criticism for its treatment of employees, its response to Florida’s controversial “Don’t Say Like Me” legislation and its decision to strip budgetary power from the creative heads.
Earlier this month, Chapek on a note It announced plans to freeze hiring, layoffs and cut costs. Disney shares have fallen nearly 38% this year.
Iger has said repeatedly that he will not return as CEO of Disney, but told employees Monday that returning to the job was an “easy yes.” He said this was the right thing for him because of his love for Disney and its employees. Several senior executives have recently told board members that they have lost faith in Chapek’s leadershipCNBC reported last week, prompting the company to reach out to Iger.
Eger Q&A
After about five minutes of introduction, Egger burst in to answer questions, including many from the personal audience. Disney employees can submit specific and anonymous questions before the event begins. Many of those present began their questions by thanking Egger for bringing company back.
Iger acknowledged that Disney’s focus should shift toward making the streaming business profitable rather than on just adding subscribers, which was the company’s priority when he stepped down as CEO in 2020. He noted that Disney will not be pursuing any major acquisitions in the near future. , adding that he is comfortable with Disney’s existing portfolio of assets.
In a memo last week, Iger said one of his first actions would be to restructure Disney’s organizational structure, which had centralized decision-making on content and distribution under Kareem Daniel. Eger has already fired Daniel and said at the city council that the new structure will take some time to implement. It will be done jointly with other executives, he said, including President of General Entertainment Content Dana Walden, Disney Studios President Alan Bergman, ESPN President Jimmy Pittaro, and Chief Financial Officer Christine McCarthy.
Iger said he wouldn’t make any dramatic statements about Disney’s work-from-home policies, but said he feels the creative business works better when employees are together face-to-face.
Eger joked his wife, Willow Bay Tell him he must run Disney again so he doesn’t run for President of the United States – Something Egger had thought of in the past.
Towards the end of his remarks, Iger indicated that he would not have returned if he did not think Disney’s future was bright.
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CNBC’s Sarah Whitten contributed to this report.
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