Disneyland prides itself on being the happiest place on the planet. When former CEO Bob Chapek was at the helm, those working at The Walt Disney Company DIS may not feel like they belong to a company worthy of such a tagline.
What Happened: Disney surprised investors, analysts and fans when it announced that it replaced Chapek with former CEO Bob Iger. The move may have been caused by company unrest caused by a restructuring proposal.
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A new report shows how Chapek and Disney Chief Financial Officer Christine McCarthy hired consulting firm McKinsey Co to get spending under control of the media giant.
The board of directors of the company supported the move, according to the Wall Street Journal.
McKinsey suggested changes including changing marketing spending controls and not having studio executives in charge of marketing spending. This led to a lot of uproar at the company.
The firm advised Disney to consolidate its divisions, including legal services, hiring and communications.
Related Link: Iger Regrets Hiring Chapek As Disney CEO Successor Calls It One Of His Worst Business Decisions
Why It is Important: McKinsey's plans have divided Disney's leadership. Chapek had already changed the company's division structure since taking over as CEO in 2020 and pushed through changes that upset many.
Since taking over as CEO, Iger has suggested giving more control to the creative content team at Disney.
Iger told Disney employees last week that it was my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are.
Iger, expected to push through several restructuring changes for the company, faces a tough act of balancing investor demands and cutting costs while appeasing employees and disgruntled fans.
Iger previously led Disney as CEO for 15 years, and was well respected by employees and investors thanks to the sizable stock market returns.
DIS Price Action: Disney shares went up 1% to $98.65 on Thursday.
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