New details have emerged following the abrupt resignation of Christine McCarthy, Disney’s chief financial officer, whose departure came as a surprise to some colleagues.
Disney said Thursday that McCarthy would be leaving on medical leave and that her husband is known to be ill and has been receiving treatment at a care facility since the beginning of the year.
However, sources report that Wall Street Journal that there had been no dramatic changes in McCarthy’s personal life lately, and one person said she had recently clashed with Disney CEO Bob Iger, her one-time ally.
McCarthy believed Iger’s recent major restructuring, which included 7,000 layoffs, didn’t go far enough, and clashed with him and other executives on the issue, the person said.
In February, Iger announced plans to cut approximately $5.5 billion in annual costs, and a reorganization that created three main units: one for theme parks and consumer products, another for ESPN, and a Disney Entertainment unit, which includes movies and TV, as well as streaming platform Disney+.
Disney chief of finance Christine McCarthy (left) reportedly clashed with Disney CEO Bob Iger, her onetime close ally, and has pushed for deeper restructuring measures
McCarthy had pushed for deeper cuts and consolidation within Disney Entertainment, putting her at odds with key executives in the unit, according to the Journal.
A Disney spokesperson did not immediately respond to a request for comment from DailyMail.com Friday night, and McCarthy could not be reached for comment.
Iger called McCarthy “one of the most admired financial executives in America” in a statement Thursday.
“Christine has served as an important strategic anchor during a period of great transformation,” Iger added.
She will continue to serve as a strategic advisor to ensure a successful transition as Disney searches for a permanent replacement, the company said in a statement.
Kevin Lansberry, currently chief financial officer for Disney’s Parks, Experiences and Products Division, will become the company’s interim CFO effective July 1.
“While I am leaving the CFO role, I look forward to helping with the transition and will always support the success of my extended Disney family,” McCarthy said in a statement.
Prior to her departure announcement, McCarthy was widely regarded as a key ally of Iger’s.
McCarthy reportedly pushed for deeper cuts and consolidation within Disney Entertainment, putting her at odds with key executives in the unit
In November, McCarthy went straight to the Disney board expressing her lack of confidence in Bob Chapek (above), triggering his impeachment and Iger’s return.
McCarthy was instrumental in preparing Iger’s return to the helm of Disney last year, instigating the impeachment of his predecessor, Bob Chapek.
In November, McCarthy went straight to Disney’s board and expressed lack of confidence in Chapek after the company endured a disastrous financial quarter.
She reportedly told the board she was unhappy with the way Chapek had communicated with investors during the Nov. 8 conference call.
Chapek was fired and Iger, who ran the company from 2005 to 2021, returned from retirement to take charge again.
McCarthy was a regular at Disney earnings calls, including last month when the company faced questions after its flagship Disney+ streaming offering lost about 4 million subscribers.
Disney’s streaming division posted a loss of $659 million for the quarter, though that was a smaller loss than analysts had expected and $400 million less than the previous quarter’s loss.
Overall, Disney posted earnings of $1.27 billion for the quarter ended April 1, on revenues of $21.81 billion. But investor concerns about the battle to make Disney+ profitable weighed on the stock.
To boost profits, Iger has vowed to cut $5.5 billion in annual costs, including a $3 billion reduction in spending on non-sports content.
Disney’s share price to date in 2023 can be seen above. Concerns about turning Disney+ into profit have weighed on stocks
Disney laid off about 7,000 employees this spring in several rounds of budget cuts, and the uproar included the impeachment of Marvel Entertainment chairman Isaac Perlmutter, Iger’s nemesis.
In contrast to Perlmutter’s non-ceremonial defenestration, Iger was full of praise for McCarthy when she resigned to take medical leave for the family.
In a profile for the Smith College alumni publication, McCarthy spoke about combating sexism and wage inequality early in her career and juggling the demands of work and raising two children.
She also survived two breast cancer attacks, in 2000 and again in 2015, shortly after being named Disney’s CFO.
“I promised myself that I can and will make it through anything,” McCarthy told the publication.