Disney CEO Bob Iger in Season 1 earnings report not only announced new projects such as ‘Toy Story 5’ ‘Frozen 3’ ‘Zootopia 2: Rise of the Non-Mammalians’, but also Bad news, that is, the announcement of 7,000 layoffs, which can reduce the cost of $5.5 billion.
The main reason for the layoffs was losses from the streaming business, with earnings showing that 2.4 million subscribers unsubscribed from Disney+ in the first fiscal quarter.
At the earnings meeting, Bob Iger said he will return the marketing and distribution power to the creative departments. “Our new structure is designed to put more power back in the hands of our creative leaders and hold them accountable for the financial performance of their content. Our previous structure severed that connection and it must be restored.”
Bob Iger explains that it is critical for companies to build on storytelling, empowering creative storytellers to decide how to design and market their films.
The previous CEO, Bob Chapek, did this by taking the power of marketing and distribution away from the creative department and giving it to the newly created media and entertainment distribution department, disguising the power to spend the relevant budget in the hands of his own cronies.
Bob Iger has said privately that he believes Bob Chapek’s decision is “killing the soul of the company.