Walt Disney insiders are furious with CEO Bob Iger over his perceived “capitulation” on DEI initiatives as well as its recent settlement of a lawsuit involving ABC News host George Stephanopoulos brought by President Trump, according to a report.
“This is not what I expected from Bob — I thought he had our back,” a company insider told Deadline, adding: “What’s next? Where do we go from here? What do we stand for now, keeping MAGA happy?”
Disney is restructuring its diversity, equity, and inclusion, or (DEI, programs to focus more on business outcomes, replacing the “Diversity & Inclusion” executive performance factor with a broader “Talent Strategy” and rebranding employee groups to emphasize workplace belonging.
Additionally, the company has removed the autoplay content advisories warning about outdated depictions in older films like “Dumbo” and “Peter Pan” — moving them to the details section instead.
These changes reflect the pressure corporations face in adapting to evolving political expectations, particularly under the Trump administration’s renewed push against DEI initiatives.
Immediately upon taking office, Trump issued executive orders to dismantle DEI within federal agencies, including eliminating DEI-related positions and initiatives.
These orders also prohibited private organizations from implementing DEI frameworks in federally contracted jobs, emphasizing a return to merit-based hiring practices.
Some Disney employees were also unhappy over Iger’s decision to agree to a $16 million payout to Trump as part of a settlement of a defamation lawsuit that was brought against ABC News anchor George Stephanopoulos.
One person described by Deadline as a “well positioned individual” within the company called the decision to settle an “embarrassment” and “the beginning of the capitulation.”
In December 2024, ABC News settled a defamation lawsuit filed by President-elect Donald Trump by agreeing to pay $15 million to his presidential library and an additional $1 million to cover his legal fees.
The lawsuit stemmed from Stephanopoulos’s on-air statements inaccurately asserting that a jury had found Trump liable for raping writer E. Jean Carroll; in reality, the jury found him liable for sexual abuse, not rape, under New York law.
As part of the settlement, ABC News and Stephanopoulos issued a public apology expressing regret for the erroneous remarks.
The Post reported earlier this week that Stephanopoulos has been particularly unhappy over being forced to attach his name to the apology.
Disney employees who spoke to Deadline also expressed frustration with a company decision to remove a transgender-themed storyline from its upcoming Pixar series “Win or Lose,” altering dialogue and content to align with new internal directives.
The transgender character remains in the show, but references to gender identity were cut, and content disclaimers have also been adjusted.
Adding to the speculation about Disney’s direction, Iger’s low-profile presence at the Hollywood premiere of “Captain America: Brave New World” raised eyebrows.
Unlike past appearances, the CEO, who normally poses on the red carpet with film stars and the creative team, avoided public interactions.
Some sources speculated to Deadline that the presence of pro-Palestinian protesters or other political factors may have contributed to his brief red carpet appearance.
“Captain America: Brave New World,” the latest installment in the Marvel Cinematic Universe, features a new Israeli superhero character, Ruth Bat-Seraph, portrayed by actress Shira Haas.
In the film, her character is reimagined as a former Black Widow and high-ranking US government official, differing from her original comic book depiction as a Mossad agent known as Sabra.
This adaptation was made to fit the cinematic narrative and to avoid perpetuating harmful stereotypes.
Despite this, many inside Disney feel that the company is treading cautiously, especially with politically sensitive projects on the horizon.
For example, “Captain America: Brave New World” touches on political themes, yet those involved with the production carefully avoided discussions that might provoke a reaction from the White House.
Anthony Mackie, who plays Captain America in the upcoming film, also faced backlash from conservative media earlier this year after suggesting that the character represents more than just America.
In response to the controversy, Mackie quickly clarified his stance, emphasizing his pride in playing the role and reaffirming his patriotism.
The Post has sought comment from Disney.
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