(Image source from: Economictimes.indiatimes.com)
Disney started its initial wave of job cuts on Tuesday (April 14) as part of a reorganization effort led by the new CEO, Josh D'Amaro. These cuts could affect up to 1,000 workers, primarily in the newly combined marketing department, where experienced executive Asad Ayaz was elevated to chief marketing and brand officer in January. Internal documents obtained by Business Insider reveal that severance pay will be based on an employee's position and sometimes how long they have worked at the company. As stated in Disney's employee handbook, non-managerial employees with less than five years of service will receive four weeks of severance pay. Those who have been with the company for five years or more will get one week of pay for each year worked, with a limit of 52 weeks.
Employees in managerial roles who have served less than five years will receive six weeks of severance. For those with more than five years, they will get four weeks plus one week for each year worked, up to a maximum of 52 weeks.
Directors and vice presidents who have worked for less than five years will be awarded 13 weeks and 26 weeks of pay, respectively. Directors with over five years of experience will be entitled to six weeks of pay plus two weeks for each year worked, capped at 52 weeks. Likewise, vice presidents who have more than five years of service will receive 18 weeks of pay plus two weeks for each year. Some of the employees who lost their jobs have also received a partial bonus, paid vacation days, and continued health coverage for several months. D'Amaro, who took over from Bob Iger, shared in a memo to staff that the company is looking for better ways to improve its operations, which involves cutting some jobs. "Because our industries change rapidly, we need to continually evaluate how to create a more flexible and tech-savvy workforce to meet future demands. Thus, we will be cutting some roles and have started to inform affected employees," D'Amaro wrote in the memo.
"I realize this is difficult. Those who will be departing have contributed significantly and truly care about the company. These choices do not reflect their work or the overall health of the business. " Disney's global workforce exceeded 230,000 at the conclusion of the previous fiscal year, mainly due to part-time employees at their theme parks. Of this number, about 76 percent are full-time, with close to 172,000 workers located in the United States. From 2023 to 2025, Disney reduced around 8,000 jobs across different phases, saving $7.5 billion, which exceeded their initial goals.
