The Walt Disney Company has disclosed Bob Iger's reorganization that will give the company more power and accountability, but also result in the loss of 7,000 employees, and hopefully pave the way to $5.5 billion in cost-saving synergies.
Disney is now divided into three segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. Each of the segments will have full operational control and financial responsibility for creative development, marketing, technology, sales, and distribution, and will be accountable for driving the business.
The major shift is to Disney Entertainment, the now-described entertainment network that encompasses all of Disney's entertainment channels and streaming, including Disney+ and Hulu. All of this combined work is also enhanced by Alan Bergman and Dana Walden's roles in this new banner. Everything they individually oversee before this merger remains the same; here's where each of the dominos of Disney's brands goes.
Bergman is responsible for Disney Live Action, Walt Disney Animation Studios, Marvel Studios, Lucasfilm, 20th Century Studios, and Searchlight Pictures, as well as Disney Music Group and Disney Theatrical Group.
Walden owns ABC Entertainment, ABC News, ABC Owned Televisions Stations, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content, and Onyx Collective.
Jimmy Pitaro will continue to lead ESPN's eight linear networks and ESPN+; he'll also be in charge of Disney's entire portfolio of sports content, experiences, and offerings. Josh D'Amaro will continue to supervise Disney's cruise lines, games, and publishing divisions.
The old division of DMED (Disney Media & Entertainment Distribution) was reorganized by Iger's predecessor Bob Chapek. Many team members from DMED and International Content and Operations (IC&O) will now be part of other groups shared by both Disney Entertainment and ESPN, including Product and Technology (except Theatrical Distribution and Music), which will be overseen by Bergman.
Luke Kang, the president of Asia Pacific, Jan Koeppen, the president of EMEA (Europe, the Middle East, and Africa), and K Madhavan, the president of India, will guide the company's media, entertainment, and sports content and operations internationally. As part of their global responsibilities, Bergman, Walden, and Pitaro will report to them.
Rebecca Campbell, the chairman of International Content and Operations, is stepping down as a result of the changes. She'll remain on until June.
The organizational changes will be implemented as soon as the new business structure is completed, and the company will begin reporting financial results under the new business structure by the end of the fiscal year.
The Walt Disney Company has been fueled by storytelling and creativity for over 100 years, with almost every interaction we have with our customers coming from something new, according to Iger in a press release. "My strategic restructuring will restore creativity to the core of the business, increase accountability, improve results, and ensure the quality of our content and experiences."
"Every day, I am reminded of how incredible talent we have in charge of the many aspects of this business...Thanks to my management team and our exceptional business leaders, who have guided us through the difficult tasks we are undertaking today, I am as excited as ever by what the future holds for The Walt Disney Company."
Bergman was previously chairman of Disney Studios Content, responsible for the Disney Theatrical Productions business. Walden was previously chairman of Disney General Entertainment Content, overseeing original entertainment and news programming for Disney's streaming platforms, broadcast and cable networks, as well as Disney Televisions Studios and Onyx Collective.