Disney CFO McCarthy will depart for a family medical break while Iger reshapes the firm

June 21, 2023: On Thursday, the entertainment firm stated that Disney’s chief financial officer Christine McCarthy will leave.

She will take a family medical leave of absence, and during that time, she will continue as a strategic advisor to Disney, the company said. McCarthy will also help find a long-term successor, Disney added. Veteran Disney executive Kevin Lansberry, who currently works as finance chief for Disney’s parks business, will become the company’s interim CFO adequate July 1.

“I am immensely grateful for the opportunity Bob provided me to serve as CFO of this iconic company and am proud of the work my talented team has done to position Disney to capitalize on the business possibilities that lie ahead,” McCarthy said in the news release announcing her out.

McCarthy, who started with Disney in 2000 and became CFO in 2015, leaves as Disney undergoes a broad restructuring during Bob Iger’s second tenure as CEO. The company has targeted 7,000 job cuts during several layoffs this year.

Disney has also contended with a more brutal ad market for media players and struggled to set itself apart in a crowded streaming space. In its fiscal second quarter, Disney reported operating losses of $659 million for its direct-to-consumer segment.

During McCarthy’s tenure, Disney’s streaming spending skyrocketed, and free cash flow fell. For a while, that was fine. Disney’s stock got a bump as the number of Disney+ subscribers soared. But she needed to change strategies when the balloon popped on streaming valuations in 2022. That is still a work in progress.

McCarthy also emerged as a pivotal formation during the previous year’s upheaval at Disney, which saw Iger return to replace his successor as CEO, Bob Chapek. During Chapek’s tenure, she moved toward his inner circle, exclusively to reportedly turn on him, which was the final straw for the former chief executive.

But Iger has loyalists at that company, and McCarthy’s move toward Chapek showed she wasn’t in that camp. So, she always had a different status internally than being charged by Iger as others, according to people familiar with the matter.

Iger struck an optimistic tone about McCarthy in an announcement, however.

“Among her many contributions to the firm, one of the things I admire most about Christine is the generous mentorship she has provided to so many of her colleagues over the years, including countless women,” Iger said in the news release.

“She has opened doors, created opportunities, and served as a role model for women at every level of business, not just at Disney, but around the world,” he added.