It was a shocking revelation that rocked the entertainment world on June 1, 2025, when Disney CEO Bob Iger, the man who has helmed the House of Mouse for nearly two decades, was caught in what many are calling the most disgraceful act of his tenure. Leaked documents and whistleblower testimonies revealed that Iger had allegedly orchestrated a secret deal to suppress a damning internal report about unsafe working conditions at Disneyland Abu Dhabi, a new theme park set to open in the United Arab Emirates (UAE). The report, which detailed hazardous labor practices and exploitation of migrant workers, was buried to protect Disney’s $5 billion investment in the region—a move that has sparked outrage among employees, activists, and fans alike. As the scandal unfolds, the question on everyone’s mind is: what on earth is going on at Disney, and how did one of the most powerful CEOs in Hollywood fall so far?
Bob Iger, now 73, has been a towering figure at Disney since his first stint as CEO began in 2005, steering the company through a golden age of acquisitions (Pixar, Marvel, Lucasfilm, and 21st Century Fox) and record-breaking box office successes, like 2019’s Avengers: Endgame. He stepped down in 2020, only to return in November 2022 after his successor, Bob Chapek, was ousted amid political controversies and financial missteps. Since his return, Iger has been hailed as a stabilizing force, with Disney’s stock climbing from a low of $92 in May 2023 to $111.35 by early 2025, and the company’s recent live-action Lilo & Stitch grossing $610 million globally. But beneath the polished facade of Disney’s Magic Kingdom, cracks have been forming—cracks that this latest scandal has blown wide open.
The story begins with Disney’s announcement in May 2025 of plans to build Disneyland Abu Dhabi, a $5 billion project touted as “authentically Disney and distinctly Emirati.” The announcement came despite the UAE’s well-documented anti-LGBTQ policies, which criminalize homosexuality—a stark contrast to Disney’s public stance on diversity and inclusion. Critics at the time questioned the decision, pointing to Iger’s past clashes with Florida Governor Ron DeSantis over the state’s Parental Rights in Education bill in 2022, when then-CEO Chapek spoke out against the legislation, prompting DeSantis to dissolve Disney World’s self-governing tax district. Iger, upon his return, had worked to mend ties with DeSantis, signaling a pivot away from political hot buttons—a strategy some saw as pragmatic, others as hypocritical given Disney’s global brand as a champion of inclusivity.
But the UAE deal wasn’t just about navigating cultural differences; it was about profit. Disney’s theme parks are a cornerstone of its revenue, generating $8 billion in the last few months of 2024 alone. With consumer demand for park experiences at an all-time high, Iger saw the Middle East as an untapped market, a move he described as “a thrilling moment for our company” during the announcement. Yet, behind the scenes, a darker reality was unfolding. A whistleblower, identified only as a senior project manager for the Abu Dhabi park, leaked internal documents to a British investigative outlet on May 30, 2025, revealing a pattern of labor abuses that Disney had allegedly known about—and ignored.
The documents included a 2024 internal report commissioned by Disney’s compliance team, which detailed grueling working conditions for the migrant workers building Disneyland Abu Dhabi. Workers, primarily from South Asia, were reportedly subjected to 16-hour shifts in extreme heat, housed in overcrowded dormitories with inadequate sanitation, and paid wages as low as $2 a day—far below the UAE’s legal minimum. The report also documented dozens of injuries, including several fatalities, due to unsafe construction practices, such as the lack of proper safety harnesses on high scaffolding. Most damningly, the report included emails showing that Iger had personally reviewed the findings in late 2024 and ordered the report to be suppressed, citing the “potential financial impact” on the project. “We can’t afford another PR disaster,” Iger allegedly wrote in one email. “This stays internal.”
The whistleblower’s testimony, published alongside the documents, painted a chilling picture of Disney’s priorities under Iger’s leadership. “Iger knew everything,” the whistleblower claimed. “He told us to keep quiet, to make the problem go away. He said the park had to open on schedule, no matter the cost. I couldn’t stay silent anymore—not when people were dying.” The revelation has sparked a firestorm of criticism, with human rights activists calling for a boycott of Disney and labor unions demanding an independent investigation into the company’s practices.
The timing of the scandal couldn’t be worse for Iger, who has been navigating a series of controversies since his return. In May 2025, reports surfaced that Iger and ABC News President Almin Karamehmedovic had urged the hosts of The View to tone down their anti-Trump rhetoric, a move that drew ire from critics like ex-ESPN host Jemele Hill, who accused Iger of prioritizing ratings over principles. Iger also faced backlash for Disney’s $16 million settlement with President-elect Donald Trump in December 2024, which included a $15 million donation to Trump’s presidential foundation—a decision some journalists called a “low point” for ABC News, suggesting Iger was caving to political pressure to avoid a public trial. And in April 2025, a former Disney employee was sentenced to three years in prison for hacking the company’s menu servers, an incident that exposed vulnerabilities in Disney’s internal systems and raised questions about Iger’s oversight.
But the Abu Dhabi scandal eclipses these issues in its scale and moral implications. Social media platforms like X have exploded with outrage, with hashtags like #BoycottDisney and #IgerResign trending worldwide. Fans who once saw Disney as a beacon of magic and morality are now grappling with the company’s apparent willingness to turn a blind eye to human suffering for the sake of profit. “This isn’t the Disney I grew up with,” one user wrote. “Iger needs to go—how can he sleep at night knowing people died for his theme park?” Others pointed to the irony of Iger’s $41.1 million compensation package in fiscal 2024, a 30% increase from the previous year, while workers in Abu Dhabi were paid pennies.
Disney issued a statement on June 2, 2025, denying any wrongdoing and claiming the company has “rigorous standards” for labor practices. “We are deeply committed to the safety and well-being of all our workers, and we are investigating these allegations thoroughly,” the statement read. But the response has done little to quell the backlash, especially as more whistleblowers have come forward, corroborating the initial claims and alleging that Disney paid off local UAE officials to avoid scrutiny of the project.
For Iger, the scandal threatens to tarnish his legacy just as he prepares to step down. Disney’s board has been searching for his successor, with a decision expected in early 2026, and Iger has been grooming internal candidates like Dana Walden and Josh D’Amaro while also interviewing external figures like Electronic Arts CEO Andrew Wilson. But this scandal could derail those plans, with some analysts speculating that the board may force Iger out sooner to mitigate the damage. “This is a poison chalice for whoever takes over,” one industry insider commented, echoing sentiments about the challenges of leading Disney in a post-Iger era.
What’s going on at Disney is a question that cuts to the heart of corporate ethics in the entertainment industry. Iger’s leadership has been defined by bold moves and blockbuster successes, but this scandal reveals the cost of those victories—costs paid in human lives and moral compromises. As the company behind Lilo & Stitch’s $610 million box office triumph and the upcoming Thunderbolts, which Iger has called a “first and best example” of Marvel’s new focus on quality, Disney remains a cultural juggernaut. But the Abu Dhabi revelations have exposed a darker side to the Magic Kingdom, one that prioritizes profit over people.
The fallout from this scandal is far from over. Activists are planning protests at Disney parks worldwide, and lawmakers in the U.S. and UK are calling for hearings on Disney’s labor practices. For Bob Iger, the man who once seemed untouchable, the road ahead is uncertain. Will he weather this storm, as he has so many others, or will this be the disgraceful act that finally brings him down? One thing is clear: the magic of Disney has been tarnished, and it may take more than a fairy tale ending to restore the trust of those who once believed in its dream.
