Kathleen Kennedy, the longtime president of Lucasfilm, is expected to step down at the end of 2025, marking the end of an era for the studio behind Star Wars and Indiana Jones. While reports suggest she plans to retire once her current contract expires, sources close to Kennedy have dismissed the speculation as premature, stating no final decision has been made.

Kennedy, who took the helm of Lucasfilm in 2012, played a pivotal role in reviving Star Wars for a new generation. She oversaw the franchise’s highly successful sequel trilogy, beginning with 2015’s The Force Awakens, which shattered records with a $936 million domestic gross and $2 billion worldwide. She also spearheaded Lucasfilm’s expansion into streaming, launching Disney+ hits such as The Mandalorian, Andor, and Ahsoka.

However, Kennedy’s tenure has been marked by mixed results at the box office. While The Force Awakens set a new benchmark for Star Wars, later films saw diminishing returns. The Rise of Skywalker grossed $1 billion globally, a significant drop from its predecessor, and Solo: A Star Wars Story (2018) became the franchise’s first-ever theatrical flop, struggling to break even. More recently, Indiana Jones and the Dial of Destiny (2023) lost an estimated $140 million, raising further questions about Lucasfilm’s creative and financial direction.

Since The Rise of Skywalker, Lucasfilm has struggled to bring Star Wars back to the big screen. Despite numerous high-profile announcements—including projects from James Mangold, Taika Waititi, Patty Jenkins, and Kevin Feige—none have made it past early development. The studio is now betting on The Mandalorian & Grogu, set for release in 2026, as its long-awaited theatrical comeback.

As Kennedy’s potential departure looms, Lucasfilm is at a crossroads. The next chapter of Star Wars remains uncertain, but with new leadership likely on the horizon, the industry will be watching closely to see how Disney reshapes its flagship sci-fi franchise for the future.