1 week ago
Disney Offers Voluntary Early Retirement Packages Amid Ongoing Layoffs
Disney is offering some longtime executives a special chance to retire early.
The program is called the Voluntary Early Retirement Offer, or VERO.
It gives eligible executives extra benefits if they choose to leave.
These benefits can include pay for up to a year, healthcare support, and continued company stock vesting for three years.
They can also keep Disney Silver Pass access for life.
Employees do not have to accept the offer.
The program is part of Disney’s plan to reduce costs and reorganize the company.
Disney has also announced layoffs, and more job cuts are expected to continue into next year.
Disney is offering eligible U.S.-based executives a voluntary early retirement package as part of its cost-reduction efforts.
The Voluntary Early Retirement Offer applies mainly to executives at Director through Executive Vice President level who meet age-and-service requirements.
Eligible employees must reach 65 points from their age and Disney service, be at least 50, and have at least 10 years with the company.
The package includes up to a year of separation pay, healthcare at employee rates, continued equity vesting for three years, and lifetime Silver Pass access.
The offer comes as Disney continues layoffs, including 1,000 job eliminations announced in April and several hundred cuts in July.
- Who
- The Walt Disney Company and eligible executives at the Director through Executive Vice President levels.
- What
- Disney is offering a time-limited Voluntary Early Retirement Offer with enhanced retirement benefits.
- Where
- The program covers U.S.-based executives in Disney Entertainment, ESPN, and Corporate, including some employees temporarily assigned abroad.
- When
- The offer was announced in an internal memo sent before the program’s launch; Disney said layoffs will continue into next year.
- Why
- Disney says it is reducing costs and reshaping operations while creating capacity to invest in content, technology, and experiences.
Key facts
- Program
- Voluntary Early Retirement Offer (VERO)
- Eligibility
- U.S.-based executives from Director through Executive Vice President who meet a 65-point age-and-service threshold, are at least 50, and have at least 10 years at Disney
- Separation pay
- Up to one year based on tenure and level
- Equity awards
- Existing equity awards may continue vesting for three years
- Healthcare
- Coverage continues at active employee rates during the severance period
- Additional benefit
- Lifetime Disney Silver Pass access outside blackout dates
- Related layoffs
- Disney announced up to 1,000 job eliminations in April and several hundred additional cuts in July
Quotes
Sonia Coleman
Disney executive vice president and chief people officer
“This is one of several actions we’re taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year.”
deadline.com
“Participation is entirely optional. No eligible executive is required to elect the offer.”
deadline.com
Josh D’Amaro and Hugh Johnston
Disney chief executive officer and chief financial officer
“we remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers, including reductions in labor and SG&A [Selling, General & Administrative expenses]”
deadline.com
Sources
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