Cracks in the house of the mouse: Chapek’s hiring of a consulting firm could…

Cracks in the house of the mouse: Chapek’s hiring of a consulting firm could…

Facebook
Twitter
LinkedIn

Disneyland prides itself on being “the happiest place on earth.” However, as a former CEO Bob Chapek was at the helm, those working on The Walt Disney Company DIS may not have felt that they belonged to a company that deserves such a slogan.

What happened: Disney surprised investors, analysts and fans when it recently announced it was being replaced Chapek With former CEO Bob Iger. The move could be partly due to unrest at the company caused by a restructuring proposal.

See also: Disney is making an AI tool that can delete (or add) actors’ faces for decades with just a few clicks

A new report highlights how Chapek and Disney Chief Financial Officer Christine McCarthy commissioned consulting firm McKinsey & Co to get the media giant’s spending under control.

According to the Wall Street Journal, the move was backed by the company’s board of directors.

McKinsey’s proposed changes included changing marketing spend controls and eliminating studio executives responsible for marketing spend. This caused a significant uproar in the company.

The firm also advised Disney to consolidate businesses, including legal, hiring and communications.

Related link: Iger regrets hiring Chapek as Disney CEO successor – calls it one of his worst business decisions

Why it matters: McKinsey’s plans divided Disney’s leadership. Since taking over as CEO in 2020, Chapek had already changed the company’s divisional structure and pushed through changes that angered many.

Since resuming his tenure as CEO, Iger has suggested giving Disney’s creative content team more control.

“It is my intention to restructure things in a way that recognizes and respects creativity as the heart and soul of who we are,” Iger told Disney employees last week.

Iger, expected to prevail several restructuring changes the company faces a difficult act of balancing investor demands and cutting costs while placating employees and disgruntled fans.

Iger previously ran Disney as CEO for 15 years and was well…

[ad_2]

Source story

More to explorer