Walt Disney fires CEO Bob Chapek; layoffs to start soon

Many big tech companies have announced layoffs and taken other cost-saving measures in recent weeks. It looks like Walt Disney could be the next company to do the same. It has started to take different measures to save costs because Walt Disney has been reporting losses for a long time.

The company reportedly fired its CEO Bob Chapek and reappointed Bob Iger to restore profits and help grow the business, as per Reuters. Iger led Walt Disney in 2005, and during his 15-year leadership, Disney bought the Marvel and Fox entertainment companies and other businesses. He also helped launch the Disney+ streaming service, which was later also advertised in India as Disney+ Hotstar, in partnership with Star India.

Iger has been hired for just two years, and with his return, the company expects better results and profits. PP Foresight analyst Paolo Pescatore stated: "The bold move (Iger's return) might feel like the right one. However, the business is at a different phase of growth," and that some steps will be taken, including "restriction of some operations."

It is said that the Disney+ streaming service could be one of those companies that will be affected the most. This is because this segment has reportedly faced a loss of more than $8 billion in the last three years.

The latest development comes just days after Walt Disney announced low quarterly profit and a $1.5 billion quarterly loss on its streaming business. During an earnings call with investors, CFO McCarthy said that Disney plans to aggressively revise spending and cut spending, and that "some of those are going to provide some near-term savings and others are going to drive longer-term structural benefits."

WSJ recently reported that Disney+ has internally told managers that layoffs to happen soon. Some austerity measures will be taken, including a ban on business trips. The company also reportedly planning to freeze hiring for most departments and will remain open for only a few critical positions.