Disney EVP and Chief People Officer Sonia Coleman sent an email to some of the company’s longtime executives Monday offering early retirement plans, as part of the company’s ongoing cost-shedding strategy.
The Voluntary Early Retirement Offer (VERO) was sent Monday to Disney employees at the Director level and above. The limited-time program offers “eligible executives the opportunity to retire now with an enhanced retirement package that recognizes their service and contributions.”
“We’re focused on meaningfully reducing costs as part of our ongoing transformation, so we can continue to invest in the areas that will drive our future growth: content, technology, and experiences,” Coleman wrote in her Monday email. “This is one of several actions we’re taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year.”
“By offering a voluntary retirement program, we hope to give eligible employees an opportunity to make a personal decision on their own terms before broader organizational decisions are finalized,” Coleman’s email continued. “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.”
Coleman’s memo stressed the voluntary nature of the offer. Eligible executives who are interested have a “defined election window” to opt into the program, though the length of said window remains unclear. In order to be VERO eligible, employees must be a minimum of 50 years old, U.S.-based, been at the company for at least 10 years and must land somewhere between a Director and an EVP.
The program is not extended to executives working on contract for the company.
To those eligible, VERO offers separation pay, healthcare at active employee rates, continued vesting of existing equity awards and continued Disney Silver Pass access, which includes free entry to all Disney parks (barring blackout dates). The program does not include a non-compete, either, which means executives who opt in are still free to get a new job either during or after their severance period without penalty.
The offer, which is entirely voluntary, comes in the same year that Disney has already unleashed several waves of company-wide layoffs. In April, 1,000 employees were cut from the companyy. Another round of cuts was made in July. Disney CEO Josh D’Amaro, who officially assumed his role in March, and CFO Hugh Johnston have made it clear that more cuts are on the way as well.
“We remain highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers,” Johnston and D’Amaro outlined in a letter sent to shareholders on Aug. 5. “We are mid-stream in this work and will provide future updates on our progress.”
You can read Coleman’s full memo below.
Dear Leaders,
Over the past few years, we’ve made real changes to how we operate, and we’re still in that process. As you heard on our most recent earnings call, we’re focused on meaningfully reducing costs as part of our ongoing transformation, so we can continue to invest in the areas that will drive our future growth: content, technology, and experiences. We’ve been evaluating a range of options, and the next phase includes introducing a Voluntary Early Retirement Offer (VERO) for a defined group of eligible executives. I wanted you to hear about this directly from me before the program launches.
The VERO is a time-limited, company-sponsored program that will give eligible executives the opportunity to retire now with an enhanced retirement package that recognizes their service and contributions. This is one of several actions we’re taking to reshape our organization, including involuntary staff reductions that have already begun in some areas and will continue into next year.
By offering a voluntary retirement program, we hope to give eligible employees an opportunity to make a personal decision on their own terms before broader organizational decisions are finalized.
Eligibility has been determined based on established criteria.* Those who are eligible will receive separate, personalized communication with details about the offer, the election process, important dates, and available resources.
As leaders, you may receive questions from your teams or colleagues once the program is announced. So that every eligible executive gets the same accurate information, we ask that you direct any detailed questions about the offer to your HRBP or the dedicated People & Culture resources that will launch alongside it.
The program is designed around several important principles:
- A voluntary choice — Participation is entirely optional. No eligible executive is required to elect the offer.
- Recognition of years of service — The enhanced package includes Separation Pay, continued vesting of existing equity awards, healthcare support at active employee rates, and continued Silver Pass access.
- Time to make an informed decision — Eligible executives will have a defined election window, followed by a confirmation period, allowing them to thoughtfully consider what is right for them.
- Dedicated support throughout the process — Comprehensive materials and a dedicated support team will be available to answer questions and help eligible leaders understand the program.
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.
We’re also mindful of what we’re asking of you, as you continue to lead and support your own teams while managing this news. Thank you for your continued leadership as we navigate this next chapter together and for helping ensure this process is handled with the care, respect, and professionalism our people deserve.
Sonia
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