Here’s the severance package Disney is giving to laid-off employees

• Disney began to lay off employees for the first time under new CEO Josh D’Amaro on Tuesday.
• Departing staffers’ severance is based on their rank and, in some cases, how long they were at the Mouse House.
• Disney’s severance package differs from recent ones offered by other media companies.

Disney is offering severance to employees affected by its latest round of layoffs, the first under new CEO Josh D’Amaro.

Laid-off staffers will receive a severance package based on their level and length of tenure at the company, according to guidelines in Disney’s employee handbook, which was viewed by Business Insider.

Here’s a summary:

Level and employment length Severance Non-manager, less than 5 years 4 weeks of pay Non-manager, more than 5 years 1 week of pay per year, up to 52 weeks Manager, less than 5 years 6 weeks of pay Manager, more than 5 years 4 weeks of pay, plus 1 week per year, up to 52 weeks Director, less than 5 years 13 weeks of pay Director, more than 5 years 6 weeks of pay, plus 2 weeks per year, up to 52 weeks VP or above, less than 5 years 26 weeks of pay VP or above, more than 5 years 18 weeks of pay, plus 2 weeks per year, up to 52 weeks

These payouts align with the severance offers received by four employees who were laid off this week and spoke with Business Insider. Two of these people said they also received a prorated bonus, paid vacation days, and continued health coverage for several months.

A Disney spokesperson declined to comment.

How does Disney’s offer compare to those from other media companies?

Paramount recently offered two weeks of pay for each year of service to hybrid staffers who didn’t want to return to in-person work, two people familiar with the package said.

The Washington Post kept laid-off employees on its payroll from its February 4 layoff date through April 10. It gave four weeks of base pay, plus two weeks a year for staffers who’d worked at the newspaper for more than three years, up to 45 weeks.

NBCUniversal was an outlier among media companies in giving a one-size-fits-all exit offer to employees last fall during its RTO push. NBCU offered employees who didn’t want to work in-person eight weeks of pay and continued health coverage for three months.

Disney’s layoffs followed the unification of its enterprise marketing and brand teams earlier this year, D’Amaro, the new CEO, said in a memo.

D’Amaro, who took over for previous CEO Bob Iger last month, told staffers that those who would be laid off had “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,” he continued.

Disney’s parks business appears set for another strong year, though the company is under pressure to grow streaming profits while keeping the traditional TV business afloat in the age of cord-cutting.

Disney shares rose 0.4% on Wednesday, after a 1.4% gain on Tuesday, as US stocks broadly rose.

Read the original article on Business Insider

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