Bob Iger brings the magic back to Disney with great news for investors, bad news for employees – The Average Joe

    Bob Iger brings the magic back to Disney with great news for investors, bad news for employees

    Victor Lei — Head of Research

    February 9, 2023

    February 9, 2023

    Ohana means family, and family means nobody gets left behind — except the 7,000 employees we over-hired.

    Bob Iger is back (for two years), and he’s bringing the magic, focus and layoffs with him.

    Iger served the news to investors on a golden platter:

    • Shareholder returns: Bringing back its dividend (but smaller than before) by the end of the year.
    • Cutting costs: Laying off 7K employees (~3% of workforce).
    • More focus: Reorganizing its biz into three divisions (streaming + media, ESPN and parks).

    He also gave creative teams more decision-making power and squashed rumors of selling or spinning off ESPN into its own company.

    Truly magic: Since Bob Iger’s return last November, $DIS is up nearly 20% — beating the S&P 500’s 5%.

    Disney also reported earnings that beat on both sales and earnings.

    • The good: Theme park sales exceeded expectations by 7% and the unit’s operating profit margins recovered.
    • The bad: Disney+ lost 2.4M subscribers, ~1M more than analyst expectations.

    The magic of diversification.

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