On the Disney earnings call in early August, Disney CEO Josh D’Amaro and CFO Hugh Johnston explained that moving forward, Disney would be participating in more efforts to reduce costs in the company.
Josh D’Amaro
Well, it looks like we may be seeing the start of these efforts as Disney is officially rolling out a new Early Retirement Plan for select executives.
According to Variety, Disney is currently offering longtime executives the option of an early retirement package, in what appears to be part of their cost-cutting initiative. This offer was announced in a memo by Senior EVP and Chief People Officer Sonia Coleman. Essentially, this is a “Voluntary Early Retirement Offer (VERO) program set to give eligible executives the opportunity to retire now with an enhanced retirement package.”
©Disney
The offer is set to include the following:
- Severance pay
- Continued vesting of any existing equity awards
- Continued healthcare support
- Continued Silver Pass access to Disney Parks
Disney CEO Josh D’Amaro
According to Coleman, “We recognize that retirement from the company is a deeply personal decision. For those who receive this opportunity, our goal is to ensure they have the information, time, and support needed to make the choice that is right for them.”
©Disney
This package is also only available to employees who meet the following requirements: “U.S.-based employees at the director through EVP levels within the Disney Entertainment, ESPN, and corporate divisions, who meet 65 points (calculated by age + years of service), with a minimum age of 50 and at least 10 years of service. Employees on contract are not eligible for the early retirement offer.”
©Disney
The goal of these packages and the other cost-cutting measures occurring throughout the company is to ” invest in areas where Disney sees the most potential for future growth: content, technology, and experiences.”
©Disney
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Every major corporation does this from time to time. Disney should focus on the creative side to purge that team and any remaining DEI implementation teams, as these two groups are not only adding no value to Disney now, but actually holding Disney back. Disney should use the liberated salary dollars to hire real storytellers and get its creative team making interesting family entertainment once again.