Disney’s new round of layoffs under its new leadership, and attention has quickly turned to the severance package being offered to laid off employees. The move comes as the company restructures parts of its marketing and brand divisions.
Reports suggest this is the first major workforce reduction under CEO Josh D’Amaro. According to guidelines in Disney’s employee handbook, which Business Insider claimed to have viewed.
Disney’s severance package structure is based on role and tenure
According to Business Insider, which claimed to have viewed the handbook, Disney’s severance system is structured around employee level and years of service. Non-managerial employees with less than five years at the company receive four weeks of pay.
Those with more than five years are eligible for one week of pay per year worked, capped at 52 weeks.Managers receive six weeks of pay if their tenure is under five years. For those with longer service, the package includes four weeks plus one additional week per year, again capped at 52 weeks.Directors are placed on a larger scale. Less than five years of service results in 13 weeks of pay. Beyond five years, they receive six weeks plus two additional weeks per year, up to the same annual cap.
Vice presidents and senior executives receive the most substantial packages. VP-level staff under five years get 26 weeks of pay. Those with longer service receive 18 weeks plus two weeks per year, capped at 52 weeks.The structure shows a clear tier system. Higher roles receive more generous baseline compensation, while long tenure increases total payout gradually.
Disney severance package additional benefits and employee support details reported
Beyond base severance pay, some employees are reportedly receiving additional support.
These include prorated annual bonuses, payment for unused vacation days, and continued health insurance coverage for a limited period.It is not uniform across all roles. The benefits appear to depend on individual employment agreements and job classification. Some employees interviewed by media outlets indicated variations in what they received.
Disney layoffs and internal restructuring under CEO Josh D’Amaro
The layoffs follow internal restructuring within Disney’s enterprise marketing and brand divisions. The changes were outlined in internal communications after leadership transitions earlier in the year.CEO Josh D’Amaro addressed staff in a memo, noting that affected employees had made meaningful contributions. The company has not publicly commented on specific severance terms.
Disney layoffs 2026 memo: Eliminating 1,000 jobs across company divisions
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
