Disney has embarked upon another wave of job cuts as part of its organisational restructuring process after appointing Josh D’Amaro as its CEO, and it could result in as many as 1,000 job losses.
According to the reports of Business Insider, the process has already begun since April 14 and mainly focuses on its newly merged marketing department. The restructuring process comes after some internal changes within the organization, which include appointing Asad Ayaz as its chief marketing and brand officer.
This step is part of an ongoing organizational process at the company.
Also Read | Still has bandage on hand, but practicing: Will the home boy make a comeback for KKR against CSK?
Severance structure based on role and tenure
Business Insider quotes internal documentation showing that the severance package is dependent on the rank of the employee as well as the period of service.
According to the employee handbook by Disney,
Non-managers who have worked for less than five years can earn four weeks pay
While those who have served for more than five years receive a pay equivalent to one week per year of service, not exceeding 52 weeks
In the case of managerial positions:
Managers who have been with Disney for less than five years receive six weeks of pay
Whereas those who have been around longer than five years receive four weeks plus a week for each year of service not exceeding 52 weeks
In the senior positions of Director and Vice President:
Directors who have served Disney for less than five years will earn 13 weeks of pay and Vice Presidents will be given 26 weeks' pay. For more years of service, the pay increases with each year.
Apart from severance pay, certain employees are entitled to prorated bonus pay, cash for unused vacation pay, and continued health benefits.
‘These decisions are not a reflection of contributions’
In an internal memo accessed by Business Insider, D’Amaro acknowledged the impact of the layoffs on employees.
“Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically enabled workforce,” he said, adding that the company had begun notifying affected staff.
“I know this is hard. Those that will be leaving us have done meaningful work here… These decisions are not a reflection of their contributions,” he added.
Also Read | UPSC opens up multiple government posts: Here’s how to apply
Part of a larger cost-cutting effort
Disney has been through a series of restructuring phases in recent times. From 2023 to 2025, the firm has laid off about 8,000 workers, saving a total of about $7.5 billion, more than its anticipated objectives.
The global workforce of Disney amounted to more than 230,000 workers in the most recent fiscal year, with roughly 76 percent being full-time staff and the bulk residing in the USA.
The recent phase of layoffs is a further indication of Disney’s efforts to restructure itself according to current changes in the media industry.
