The Walt Disney Co has begun layoffs, and this decision will reportedly impact nearly 1,000 roles across the organisation. New CEO Josh D’Amaro informed employees about the layoffs in an internal email. The move came as part of the organisation’s restructuring under D’Amaro’s plan.
About the severance package:
According to documents reviewed by Business Insider, the severance package is based on employees’ rank. In some cases, it also depends on how long they have been with the company.
Citing guidelines in Disney’s employee handbook, the outlet reported that employees in non-managerial positions who have been with the company for less than 5 years will receive 4 weeks of pay. Employees in the same roles with more than five years with the company will get 1 week of pay per year, which can go up to 52 weeks.
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For managers with less than 5 years of service, the severance package includes 6 weeks of pay. Those with more than 5 years with Disney will reportedly get 4 weeks of pay, plus 1 week per year, which goes up to 52 weeks.
Disney is reportedly offering 13 weeks of pay to directors who have worked there for less than 5 years. For those who have worked in the same role for over 5 years, the severance package includes 6 weeks of pay, plus 2 weeks per year, which can go up to 52 weeks.
As for VPs, those with less than 5 years at the company will get 26 weeks of pay, and those with more than that reportedly will receive 18 weeks of pay, plus 2 weeks per year, which can go up to 52 weeks.
Disney CEO’s memo to the affected employees:
D’Amaro, in an internal memo, said that Disney “will be eliminating roles in some parts of the company.”
Here’s the full memo:
Dear Fellow Employees & Cast Members,We have experienced a great deal of change these last few years, both at the company and across our industries. Knowing firsthand how these moments can bring uncertainty, I want to be open about some difficult news that will be communicated this week.
In January, we announced our unified enterprise marketing and brand organization, designed to serve consumers in an even more connected way. Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney. Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs. As a result, we will be eliminating roles in some parts of the company and have begun notifying impacted employees.
I know this is hard. Those that will be leaving us have done meaningful work here and care deeply about this company. These decisions are not a reflection of their contributions, or of the overall strength of the company. Rather, they reflect our continual evaluation of how to more effectively manage our resources and reinvest in our businesses.
Compassion and respect remain at the heart of our company. As we move forward through this transition, our priority is to support those impacted and help each person navigate what comes next with resources, guidance, and direct support.
Despite these difficult decisions, I remain optimistic about where we’re headed as a company. I’m deeply grateful for all of your contributions and for the dedication, professionalism, and care you bring to your work each day. Even in challenging moments, you continue to demonstrate what makes Disney so special.
Josh
Social media reacts:
The Disney mass layoffs have prompted varied reactions on social media. An individual wrote, “What happened to the employees being part of the ‘Disney family’, Josh? What happened to the ‘Disney family’, Josh?”
Another added, “If firing people makes the business more productive, then lead by example.” A third posted, “That’s brutal and super sad.”
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According to Reuters, the planned layoffs will affect less than 1% of its total employees. Disney employed about 231,000 people as of the end of fiscal year 2025.
