Disney whose streaming service Disney + is bleeding cash has sacked their global CEO Bob Chapek, he has been replaced by a former CEO.

Bob Iger, who served as Disney chief executive for 15 years has been given a two-year deal to try and turn around the struggling Disney operation that has seen their shares slump 40% this year.

Bob Chapek had only been in the job for 33 months and during that period the Company witnessed downturns on multiple fronts.

Iger, who has been critical of Chapek’s performance, is one of the world’s most celebrated business leaders.

Iger has “a mandate from the Board to set the strategic direction for renewed growth,” the company said in a press release.

In a memo to Disney “cast members,” Iger said that he felt “a bit of amazement” that he was returning to the company as CEO.

Disney + came unstuck as they attempted to lure subscribers with expensive new content as they tried to take on Netflix who has also seen a downturn in their fortunes during the past 12 months with the business losing more than two million subscribers.

New Disney CEO Robert Iger replaced sacked Bob Chapek

Disney has also been at the centre of a noisy controversy in Florida over a law regulating what teachers can say about LGBTQ issues.

The decision to bring Iger back into the company is a surprising reversal by the board chair, Susan Arnold.

“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” Arnold said in a statement.

Disney shares fell to a two-and-a-half-year low on November 10, after reporting a massive A$2.3 billion loss from its streaming division.

Disney+ added 12.1 million global subscribers during the quarter, but couldn’t stop the company’s ballooning costs in this sector.

Walt Disney missed analysts’ forecasts for the fourth quarter.