Bob Iger had been Disney’s CEO for 15 years before he left in 2020, and he is responsible for the Disney we know today. Iger masterminded the acquisition of Pixar, Lucasfilm, and 20th Century Fox. He oversaw the launch of Disney+. He’s the reason that Disney owns Marvel Comics. Bob Iger’s phenomenal success was up when his contract ran out in 2020, and now, two years after his departure, the man returns to shepherd Disney through troublesome times as their stock plummets.

The announcement of Bob Iger’s return came as a surprise to everyone at Disney, even Bob Chapek, the CEO Iger was meant to replace. It sent ripples through their corporate structure, and now, as Iger begins to take over once more, big changes are undoubtedly coming to Disney. More executive layoffs have already been announced, and Chapek’s corporate strategy is quickly being erased. But Iger faces big challenges.

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Disney+ is still operating at a loss. And Chapek’s reaction to Florida’s “Don’t Say Gay” bill put Disney in opposition to Governor Ron DeSantis. Despite the mountain he has to climb, stockholders seem hopeful. The day after Iger’s return was announced, Disney stocks rose 6%. Although company portents look good, what happens in the next few months might be shocking.

Bob Iger’s Sudden Return

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No one expected Iger to be CEO of Disney again, not even Iger. In January, Bob Iger told The New York Times that it was “ridiculous” to think he might hold the position again. Everyone was all but certain that Iger had retired for good. But Bob Chapek’s performance as his replacement was characterized by several big moves that made Disney’s board of executives quite nervous.

One of Chapek’s first decisions as CEO was to separate arms of content and distribution by forming Disney’s Media and Entertainment Distribution division. This alienated a lot of creatives and was contrary to how Iger used to run the company. Many of the creatives and talent in Disney content felt that they had lost a measure of control over their projects as some of their power was shifted to distribution executives. Iger’s approach has traditionally been more creatively focused. His philosophy in the past has been to put that side of Disney at the center of the company and prioritize cost control elsewhere. Iger says he is already working on restructuring that part of the company.

Chapek also created a rift between Disney and the State of Florida this year over controversial legislation. When Governor Ron DeSantis signed into law Florida’s “Don’t Say Gay” bill (which outlaws the education of gender identity or sexual orientation in any manner that is not “developmentally appropriate” according to the state), Disney employees at Orlando’s Disney World and Walt Disney Studios staged a walkout to protest the new law. Disney released a statement supporting their employees and LGBTQ rights and paused political contributions in Florida. This sparked the feud between Disney and DeSantis and led to DeSantis’s abolition of the Reedy Creek Improvement District, the special tax district and, effectively, a governmentally autonomous region of Florida that houses Disney World.

Disney executives took this as a major sleight and a strike against Chapek. But many say the nail in the coffin came on November 9th when Disney shares dropped below $90, news that came right after Disney’s poor fiscal performance in their fourth quarter. When Bob Iger was officially announced to reenter the company, it happened during an Elton John farewell concert that many Disney execs were attending. Chapek was out of his office within days. And now, just a week after it happened, Iger is already making some noticeable moves.

Big Changes at Disney

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When Chapek was ejected, Kareem Daniel quickly followed him. Daniel was head of Chapek’s Media and Entertainment Distribution division, and it is just the start of erasing the apparent mistakes Chapek has been making.

Variety now confirms that Arthur Bochner will be the next to exit. Bochner served as Chapek’s chief of staff and lead speechwriter. He was later installed as the vice president of strategic communications late in Chapek’s career. It doesn’t come as a surprise, as Bochner was seen as Chapek’s confidante, but it is a sign of an ongoing shake-up that will persist in the coming weeks.

Iger faces an uphill battle. The biggest challenge may be this recent political kerfuffle with Gov. DeSantis. Disney will have to walk a thin line between supporting a diverse working environment and placating a politician that many of its employees find distasteful. Along with diplomatic difficulties, Iger faces the problem of invigorating the Disney+ platform despite its less-than-profitable returns.

Disney is due for an overhaul, and Iger is just the man to do it. Changes will be felt throughout the company, from executives to talent to viewers at home with subscriptions and theme park tickets. The world of Walt Disney is sure to turn differently in the coming months, and no one has a reputation for the job like Bob Iger.