Disney offering early retirement packages to veteran executives

Disney announced Monday a voluntary early retirement program for veteran executives, as part of the company's ongoing cost reduction efforts. The program, targeting directors and above within Disney Entertainment, ESPN, and corporate divisions, allows eligible employees to retire immediately in exchange for a generous retirement package.

To qualify, executives must be U.S.-based, at least 50 years old, have at least 10 years of service, and accumulate 65 points based on age and years of service. The package includes one year of separation pay based on tenure and level, healthcare coverage at employee rates during the severance period, and continued vesting of existing equity for three years. Participants also receive lifetime Silver Pass access to Disney theme parks, a benefit typically reserved for retirees.

The offer comes after Disney laid off around 1,000 employees in April and an additional few hundred positions in July, primarily in marketing and corporate functions. Disney's new CEO Josh D'Amaro and CFO Hugh Johnston mentioned on an August 5 earnings call that further cost reductions are ongoing.

This early-retirement program marks the first of its kind in recent Disney history; the company has offered voluntary buyouts in 2001 and 2009 to reduce workforce numbers.