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Disney is moving forward with a program allowing longtime employees in certain roles the opportunity to accept an early retirement package ahead of anticipated restructuring.
The entertainment giant outlined the voluntary early retirement offer (VERO) available to tenured executives who meet eligibility criteria in an internal email sent by Disney Chief People Officer Sonia Coleman, which was reviewed by FOX Business. The early retirement program was first reported by Deadline.
Coleman’s note said that the voluntary early retirement packages are time-limited and are one of several actions Disney is taking to restructure the organization, including involuntary staff reductions that are underway in some parts of the company and are expected to continue into next year.
Disney’s memo said the eligibility criteria for executives and indicated that they will receive separate, personalized communications from the company that specify details of the offer, the election process, important dates and other resources that will be available to them as they weigh their decision.
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To be eligible for the voluntary early retirement package, employees must be based in the U.S. in roles ranging from director to executive vice president in Disney Entertainment, ESPN and the corporate divisions. They must also have 65 points – calculated based on their age plus years of service – with a minimum age of 50 and at least 10 years of service.
Disney’s offer includes separation pay, continued vesting of equity awards, healthcare support at active employee rates, as well as continued Silver Pass access.
Eligible executives will be given a defined election window followed by a confirmation period so they have an opportunity to consider whether accepting the VERO is the right decision for them. Participation is voluntary and eligible executives aren’t required to opt in to the early retirement plan.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 111.25 | +0.64 | +0.58% |
The company’s intent with the voluntary retirement program is to give eligible employees a chance to make a decision on their own terms before Disney proceeds with finalizing broader organizational decisions.
The voluntary early retirement offer is time-limited, and once it closes, the company will continue moving forward with addressing organizational needs through its standard reduction-in-force process that will be on a separate timeline.
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Earlier this month, Disney CEO Josh D’Amaro and CFO Hugh Johnston said in a letter to shareholders that they “remain highly focused on reducing costs across the enterprise to create incremental capacity for growth and are evaluating a variety of levers, including reductions in labor and SG&A.”
They added at the time that they were “mid-stream in this work” and would provide future updates.
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