Click here to read the full article.
Disney is offering longtime executives early retirement packages amid larger cost-cutting efforts and ongoing layoffs.
The offer, announced in a memo to staff sent by Senior EVP and Chief People Officer Sonia Coleman
on Monday, the time-limited, company-sponsored Voluntary Early Retirement Offer (VERO) program is set to give eligible executives the opportunity to retire now with an enhanced retirement package that “recognizes their service and contributions.”
The offer will include separation pay, continued vesting of existing equity awards, healthcare support at active employee rates, and continued Silver Pass access to Disney theme parks.
“We recognize that retirement from the company is a deeply personal decision,” Coleman wrote. “For those who receive this opportunity, our goal is to ensure they have the information, time, and support needed to make the choice that is right for them.”
The offer will be available to U.S.-based employees at the director through EVP levels within the Disney Entertainment, ESPN, and corporate divisions, who meet 65 points (calculated by age + years of service), with a minimum age of 50 and at least 10 years of service. Employees on contract are not eligible for the early retirement offer.
On an earnings call with analysts earlier in August, Disney CEO Josh D’Amaro and CFO Hugh Johnston indicated more layoffs and cost-reduction measures were forthcoming following rounds of cuts in April and July.
See Coleman’s letter, which was sent to staff members ranked “director” or higher, in full below.
Dear Leaders,
Over the past few years, we’ve made real changes to how we operate, and we’re still in that process. As you heard on our most recent earnings call, we’re focused on meaningfully reducing costs as part of our ongoing transformation, so we can continue to invest in the areas that will drive our future growth: content, technology, and experiences. We’ve been evaluating a range of options, and the next phase includes introducing a Voluntary Early Retirement Offer (VERO) for a defined group of eligible executives.
I wanted you to hear about this directly from me before the program launches. The VERO is a time-limited, company-sponsored program that will give eligible executives the opportunity to retire now with an enhanced retirement package that recognizes their service and contributions. 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.
By offering a voluntary retirement program, we hope to give eligible employees an opportunity to make a personal decision on their own terms before broader organizational decisions are finalized.
Eligibility has been determined based on established criteria.* Those who are eligible will receive separate, personalized communication with details about the offer, the election process, important dates, and available resources.
As leaders, you may receive questions from your teams or colleagues once the program is announced. So that every eligible executive gets the same accurate information, we ask that you direct any detailed questions about the offer to your HRBP or the dedicated People & Culture resources that will launch alongside it.
The program is designed around several important principles:
– A voluntary choice — Participation is entirely optional. No eligible executive is required to elect the offer.
– Recognition of years of service — The enhanced package includes Separation Pay, continued vesting of existing equity awards, healthcare support at active employee rates, and continued Silver Pass access.
– Time to make an informed decision — Eligible executives will have a defined election window, followed by a confirmation period, allowing them to thoughtfully consider what is right for them.
– Dedicated support throughout the process — Comprehensive materials and a dedicated support team will be available to answer questions and help eligible leaders understand the program.
We recognize that retirement from the company is a deeply personal decision. For those who receive this opportunity, our goal is to ensure they have the information, time, and support needed to make the choice that is right for them.
We’re also mindful of what we’re asking of you, as you continue to lead and support your own teams while managing this news. Thank you for your continued leadership as we navigate this next chapter together and for helping ensure this process is handled with the care, respect, and professionalism our people deserve.
Sonia
