Disney Chief Financial Officer Kristen McCarthy is stepping down

Kristin McCarthy, Senior Executive Vice President and Chief Financial Officer of The Walt Disney Company, participates in a panel discussion during the Milken Institute’s Annual Global Conference at the Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California.

Michael Kovac | Getty Images Entertainment | Getty Images

Entertainment giant Christine McCarthy, Disney’s chief financial officer, has said she is stepping down from the role.

The company said it will take family medical leave and, during that time, will continue to serve as a strategic advisor to Disney. Disney added that McCarthy would also help find a long-term successor. Kevin Lansbury, Chief Financial Officer of Disney’s Parks Business, will serve as the company’s interim Chief Financial Officer effective July 1.

“I am deeply grateful for the opportunity Bob has afforded me to serve as CFO of this iconic company and am proud of the work my talented team has done to put Disney in a position to capitalize on the business possibilities that lie ahead,” McCarthy said in a press release. .

McCarthy, who started with Disney in 2000 and became chief financial officer in 2015, is leaving as Disney undergoes a broad restructuring during Bob Iger’s second term as CEO. The company has targeted 7,000 job cuts through several rounds of layoffs this year.

Disney has also struggled with a tougher advertising market for media companies and has struggled to differentiate itself in a crowded broadcast space. In its fiscal second quarter, Disney reported an operating loss of $659 million for its direct-to-consumer segment.

During McCarthy’s tenure, Disney’s downstream spending skyrocketed and free cash flow decreased. For a while, that was fine. Disney shares got a jump as Disney+ subscribers soared. But when the ratings balloon popped streaming in 2022, it needed to change strategies. This work is still in progress.

McCarthy has also emerged as a central figure during last year’s turmoil, which saw Iger return to replace his successor as CEO, Bob Chapek. During entanglement, she moved towards his inner circle, only to turn against him, which proved to be the last straw for the former CEO.

But Iger has loyalists in that company, and McCarthy’s move toward Chapek showed she wasn’t in that camp. So she never had the same standing internally that Egger trusted her as others, according to people familiar with the matter.

“Among her many contributions to the company, one of the things I most admire about Christine is the generous mentorship she has given to many of her colleagues over the years, including countless women,” Iger said in the company’s announcement. “She opened doors, created opportunity, and served as a role model for women at every level of the business—not just at Disney, but all over the world.”

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