Bob Iger extended his contract as CEO of Disney until 2026 in the midst of the company's current crisis

Bob Iger will remain CEO of the Walt Disney Company until 2026, two years longer than he had planned. The information was confirmed by Iger in a statement sent to the company's employees. "I am writing to share that I accepted the Disney Board's request to stay on as CEO for two more years, through the end of 2026," Iger said in the document, obtained by CNBC.

The CEO returned to Disney in November 2022, less than a year after retiring from the company. At that time, he said that he was taking office for only two years, until 2024. In February of this year, he claimed that he had no intention of staying beyond the agreed-upon time. However, it appears that the attempt to find someone to succeed him in office was unsuccessful..

"The importance of the succession process cannot be overstated, and as the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition," Iger wrote in the letter sent to employees.

Bob Iger acknowledged the crisis at Disney

The decision for Iger to stay on came at a time when the company is facing a crisis. The company tried to get more people into theaters but did not achieve their desired numbers. In recent months its workers experienced several waves of layoffs, in an effort by the CEO to improve the corporation's economic situation. For example, in April, the company announced the second round of layoffs. They let go of 4,000 of the 7,000 workers who would lose their jobs as a result of the Walt Disney Corporation's savings plan.

"Since my return to Disney just seven months ago, I’ve examined virtually every facet of our businesses to fully understand the tremendous opportunities before us, as well as the challenges we’ve been facing from the broader economic environment and the tectonic shifts in our industry. On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues. “But there is more to accomplish before this transformative work is complete, and because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years," said Iger.

The company's optimism

The crisis facing the company is not only reflected in the workers; all the major productions that the company expected to be successful did not meet expectations. The Little Mermaid, a remake of the 1989 animated classic, and Elemental both failed at the box office. Disney has gone woke in its productions, which has alienated viewers. Added to that is the battle with Florida Governor Ron DeSantis, who is a fierce critic of Disney's policies. Both DeSantis and Disney have been going back and forth over the last year about a series of disagreements, which began when the company refused to support the Florida governor on Senate Bill 1834 (dubbed Don't Say Gay).

Its streaming platform has also experienced a drop. In May, it announced that it would remove a total of 43 movies and series from its platform. In fact, between January and March 2023, it lost four million users on Disney+. Despite the situation, Bob Iger said he is optimistic about the company's future. "I am unwaveringly optimistic about Disney’s future. I believe in this company. I believe in the leadership team I have around me. And I believe in you – our spectacular employees and Cast Members. It’s an honor to work alongside you as we chart Disney’s path forward together, and I look forward to all that we will continue to achieve over the coming years."