Disney’s new executive leadership structure has come into focus.
A day after CEO Bob Iger previewed a reorganization that returns financial decision-making back to its creative ranks, newly anointed Disney Entertainment co-chairs Alan Bergman (film) and Dana Walden (television) have detailed their respective responsibilities. The promotions expand their power significantly — they’ll now oversee streaming businesses, including Disney+ and Hulu — and put the two executives on equal footing as the conglomerate ponders its future in a post-Iger era and returns functions previously splintered off under former CEO Bob Chapek’s Disney Media and Entertainment Distribution group. The changes will also see Bergman and Walden gain oversight of all international (non-sports) content and operations and functions including marketing, ad sales, content sales, distribution and technology alongside ESPN’s Jimmy Pitaro. (Walden, Bergman and Pitaro outlined the changes in a joint memo to staff, which can be read in full below.)
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Rebecca Campbell, chairman of international content and operations and a Disney veteran of more than two decades, has opted to leave the company as a result of the changes. She will remain at the company through June to assist with the transition. Head of streaming Michael Paull will now report to both Walden and Bergman.
“For nearly 100 years, storytelling and creativity have fueled the Walt Disney Co., with virtually every interaction we have with our consumers emanating from something creative,” Iger said in a statement Thursday. “I am committed to positioning this company for a new era of growth. Our strategic restructuring will return creativity to the center of the company, increase accountability, improve results, and ensure the quality of our content and experiences.”
The film side of the aisle isn’t undergoing a major makeover. Bergman will continue to have dominion over all of Disney’s marquee film stables, including Marvel, Pixar, Lucasfilm, Walt Disney Animation, 20th Century and Searchlight, as well as Disney Music Group and Disney Theatrical Group. He’s helped guide the movie studio during its most successful era in history, including a long stint as president before being named co-chair alongside Alan Horn in 2019, and is credited with integrating many of the above brands. He’s served as sole chairman of Disney Studios Content since January 2021.
On the TV side, Walden will continue to have oversight of ABC Entertainment, ABC News, ABC Owned Televisions Stations, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content and Onyx Collective.
The key change in the larger structure will see several shared services that will support both Disney Entertainment and ESPN. These include Aaron LaBerge’s product and technology; Rita Ferro’s ad sales; and Justin Connolly’s platform distribution (excluding theatrical distribution and music, which will be overseen by Bergman). These divisions, which had been part of DMED, will now function across both Disney Entertainment and ESPN in a bid to create efficiency and a more streamlined and cost-effective approach to operations.
Outside of North America, the company’s media, entertainment, and sports content and operations will continue to be managed regionally by Luke Kang, President Asia Pacific; Jan Koeppen, President EMEA; Diego Lerner, President LATAM; and K Madhavan, President India. These leaders will report to Bergman, Walden, and Pitaro as part of their global responsibilities. As a result of the changes, Rebecca Campbell, Chairman, International Content and Operations, has decided to leave the Company. An esteemed leader and longtime industry veteran, Campbell will stay on through June to help with the transition.
“Every day, I am reminded of what incredible talent we have leading the many facets of this company,” Iger said. “Thanks to my management team and our exceptional business leaders, who have acted quickly and strategically on the important changes we are undertaking today, I am as encouraged as ever by what the future holds for the Walt Disney Co.”
The new structure laid out by Iger eliminates the DMED unit that was created by recently ousted Chapek in 2020. DMED, in a move that increasingly frustrated both film and TV executives, gave major decisions regarding budgets, finances, marketing and distribution to a separate division that was fronted by top Chapek lieutenant Kareem Daniel. The latter exec was pushed out a day after Disney shocked the industry (and Wall Street) with its decision to oust Chapek and replace him with his predecessor, Iger.
The demise of DMED means that Bergman’s film studio will once again have purview over theatrical distribution, a sore subject during in the short-lived Chapek era, when decisions were made separate from the creative brain trust most familiar with the content. On the TV side, the dismantling of DMED re-empowers network and studio chiefs to have direct control over budgets and decisions on what gets made for specific platforms as well as how it is released, among other things. Under Chapek, TV executives were at Daniel and DMED’s mercy when it came to greenlight decisions, larger budgets and where programming launched.
Iger, who made his return to Wall Street earnings calls Wednesday, revealed Disney would be divided into three core business segments: Disney Entertainment (topped by Walden and Bergman), ESPN (led by James Pitaro) and Parks/Experiences (fronted by Josh D’Amaro). Iger said the new structure would be more cost effective and take a streamlined approach to Disney’s operations. Iger said 7,000 Disney staffers — about 3 percent of its workforce (including theme parks) — would be impacted by layoffs as a result of the restructuring.
“Our new structure is aimed at returning greater authority to our creative leaders and making them accountable for how their content performs financially,” Iger told analysts Wednesday. “Our former structure severed that link and must be restored. Moving forward, our creative teams will determine what content we’re making, how it is distributed and monetized, and how it gets marketed.”
As part of Disney’s quarterly report, finance chief Christine McCarthy said the company is targeting $5.5 billion in cost savings. That includes $3 billion related to future content savings, with the remaining $2.5 billion from such other costs as marketing, staffing or technology.
Here’s the memo from Bergman, Walden and Pitaro:
Dear Fellow Employees,
On our Q1 Earnings call yesterday, Bob announced an exciting strategic reorganization that refocuses the company on creativity, empowers our creative leaders and ensures we have accountability for our businesses globally. At this moment of great change and opportunity, we are inspired by the vision Bob has set for the company, and we are honored to be leading our respective business groups around the world at this important time in Disney’s history. Disney’s legacy of creating and delivering world-class entertainment through our unmatched brands and franchises remains central to who we are. And it is with that spirit of creativity and innovation that we proudly embark on a new era of exceptional storytelling.
As you heard, effective immediately, the company will be reorganized into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. Today, we are writing to provide you with details about the newly formed Disney Entertainment and ESPN business segments and information about how this reorganization will impact the segments for which you’ve all been working. While we continue finalizing our operations and structures over the coming weeks, we want to provide answers to many of the initial questions you may have about the future in store for our businesses.
Today our colleagues from both Disney Media and Entertainment Distribution (DMED) and International Content and Operations (IC&O) will be joining Disney Entertainment and ESPN, with some becoming a part of one of the new shared functions that support both of our businesses. We are looking forward to more fully integrating our new team members as we seek a greater level of collaboration and an even more meaningful connection between our series, films and sports content, and our audiences.
Below are details about our new structure which have been lifted from the attached release, as well as some additional information.
Firstly, Disney Entertainment: this new segment will be co-chaired by Alan and Dana who will be responsible for the company’s full portfolio of entertainment media and content businesses globally, including streaming.
ESPN will include ESPN networks and ESPN+, and will be led by Jimmy. He will also be responsible for the management and supervision of the company’s full portfolio of sports content, products and experiences across all of Disney’s platforms worldwide, including its international sports channels.
The leaders of each content group will have full operational control and financial responsibility for creative development, marketing, sales, and distribution, and will be accountable for driving business efficiencies.
DISNEY ENTERTAINMENT
Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden will oversee the company’s global streaming business and manage all content decisions for Disney+ and Hulu.
Alan will also have primary oversight of the following businesses and content brands: Disney Live Action, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, Lucasfilm, 20th Century Studios, and Searchlight Pictures as well as Disney Music Group and Disney Theatrical Group. Asad Ayaz will continue to oversee marketing for Alan’s creative groups in addition to Disney+, working closely with the Hulu marketing team.
Dana will also have primary oversight of the following businesses and content brands: ABC Entertainment, ABC News, ABC Owned Television Stations, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content and Onyx Collective. As part of this reorganization, Debra OConnell will report to Walden as President, Networks (excluding ESPN). Shannon Ryan will continue to oversee marketing for Dana’s creative groups in addition to Hulu, working closely with the Disney+ marketing team.
ESPN
Jimmy will continue to oversee eight linear networks, including ESPN and ESPN2; sports content across all Disney domestic and, going forward, international platforms; ESPN+; ESPN Audio; ESPN Digital; ESPN Social; ESPN Fantasy and a variety of owned sports events. The ESPN team will be responsible for the company’s full portfolio of sports content, products and experiences on Disney platforms worldwide. Laura Gentile, who previously had marketing responsibilities across Disney Networks and ESPN, will now focus solely on leading all aspects of ESPN marketing across all platforms.
Several shared-service organizations across the company will support both Disney Entertainment and ESPN, facilitating company-wide efficiencies and creating a more cost-effective, coordinated, and streamlined approach to operations. These include Product and Technology, led by Aaron LaBerge; Advertising Sales, led by Rita Ferro; and Platform Distribution led by Justin Connolly excluding Theatrical Distribution and Music, which will be overseen by Alan Bergman.
Outside of North America, the company’s media, entertainment, and sports content and operations will continue to be managed regionally by Luke Kang, President Asia Pacific; Jan Koeppen, President EMEA; Diego Lerner, President LATAM; and K Madhavan, President India. These leaders will report to each of us as part of their global responsibilities. As a result of the changes, Rebecca Campbell, Chairman, International Content and Operations, has decided to leave the company. An esteemed leader and longtime industry veteran, Campbell will stay on through June to help with the transition.
In coming weeks, we will finalize operations and structures, including how our corporate functions will support our new company structure. During this transition, DMED and IC&O finance, communications, HR, and legal will report, respectively, to Christine McCarthy, Kristina Schake, Paul Richardson and Horacio Gutierrez.
As we heard yesterday, this reorganization of our company will result in reductions to our overall workforce, which will affect every segment and function across the company, and we are very mindful of the personal impact of these changes. More permanent decisions about individual positions and teams will be made in the coming weeks as we build out our operations in alignment with the company’s overall strategic priorities. Understandably, these changes will take a toll on colleagues who will be impacted, and we do not take that lightly. We will continue to be as transparent as possible throughout this process.
In the meantime, we encourage everyone to speak with your individual leaders, who will soon have additional information about assignments, reporting structures, and more.
The three of us share deep admiration and respect for one another, and it is a true privilege to lead such talented teams and individuals. We are excited to continue to foster a culture where we can do our very best work and look forward to building on your many incredible achievements as we embark on this new chapter.
Thank you for all that you do, and you will hear more from us soon.
With gratitude,
Alan, Dana and Jimmy
And the memo from Iger:
Dear International Content & Operations Employees,
I’m writing to share the news that, after more than 25 years of tremendous service, Rebecca Campbell has decided to leave The Walt Disney Company. She has been a truly valuable and trusted leader throughout her time here, and I am grateful for her innumerable contributions to this company.
Over the years, I’ve worked with Rebecca in so many different roles, and beyond the meaningful impact she has had in each of them, I’ve always appreciated her willingness to take them on graciously, enthusiastically, and with an impeccable degree of professionalism – wherever and whenever she was called to serve. Her talents and expertise, and her warmth and sense of humanity will be missed.
I’ve asked Rebecca to stay on through June to help through this transition and I want to thank her for her partnership and many years of dedicated service. Whatever she decides to do moving forward, I know she will be incredibly successful.
And to all of you, I want to thank you for your continued contributions to this company as we take on the transformative work ahead. You also will receive an additional email from Alan Bergman, Dana Walden, and Jimmy Pitaro detailing how our International Content & Operations employees will be integrated into our new businesses.
Thank you again for all you do.
With gratitude,
Bob
