Disney Starts Layoffs Under New CEO: 1,000 Jobs Cut. Full Severance Details Revealed

Disney began the first round of layoffs on Tuesday (Apr 14) as part of a restructuring drive under new CEO Josh D'Amaro. The layoffs are expected to impact as many as 1,000 employees, with the majority of cuts expected in the company's recently consolidated marketing department, where veteran executive Asad Ayaz was promoted as the chief marketing and brand officer in January. According to internal documents accessed by Business Insider, severance packages are being determined by an employee's rank and, in some cases, their tenure with the company.

According to Disney's employee handbook, non-managerial staff with less than five years of service are eligible for four weeks of severance pay. Those with five or more years at the company receive one week of pay for every year worked, capped at a maximum of 52 weeks.

Managers with less than five years of ervice will receive six weeks of severance pay while those with more than five years of experience will receive receive four weeks of pay, plus one week per year, capped at a maximum of 52 weeks.

Directors and vice presidents with less than five years of service will receive 13 and 26 weeks of pay, respectively. Directors with more than five years of sevice will be eligible for six weeks of pay, plus two weeks per year, up to 52 weeks. Similarly, VP with more than five years of service will be handed 18 weeks of pay plus two weeks per year.

Some of the laid off employees have also received a prorated bonus, paid vacation days and continued health coverage for several months.

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'I Know This Is Hard'

D'Amaro, who succeeded Bob Iger, in an internal memo to employees stated that the company was looking for new ways to streamline its operations, which meant eliminating roles in some parts of the organisation.

"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," D'Amaro said in the memo.

"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."

Disney's global workforce surpassed 230,000 at the end of the last fiscal year, largely driven by part-time theme park staff. Of this total, approximately 76 per cent are employed full-time, with roughly 172,000 employees based in the US. Between 2023 and 2025, Disney eliminated roughly 8,000 positions in several phases, generating $7.5 billion in cost savings, which was well above its original targets.