Disney Layoffs 2026

Understanding Your Disney Severance Agreement

1,000+ employeesreportedly affected. Here's what to look for in your agreement before you sign.

What has been reported

Disney is reportedly conducting layoffs across corporate, finance, technology, and creative divisions under new CEO Josh D'Amaro
Severance is reportedly based on level and length of tenure per Disney's employee handbook
Some employees have reportedly received prorated bonuses and paid vacation days in addition to base severance
Health coverage is reportedly being extended for several months for affected employees
Executive-level employees may receive enhanced terms under the Disney Executive Severance Pay Plan
Severance is typically conditioned on signing a release of claims and compliance with restrictive covenants

Employees affected

1,000+

Reported formula

~2 wks/yr

COBRA window

Several months

Important: Disney's severance is typically conditioned on signing a release of claims including age discrimination claims. If you are 40 or older, you have at least 21 days to review the agreement and 7 days to revoke after signing. Do not sign before your review period expires.

See how your specific terms compare

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Key clauses in Disney severance agreements

Most severance agreements share common clause types. Here's what each one typically means and what to watch for.

Severance pay formula

Disney reportedly calculates severance based on your level and years of service. Most corporate employees may receive approximately 2 weeks of pay per year of service. Executive-level employees may receive significantly more.

Check whether your bonus is prorated and included. Some Disney employees have reportedly received prorated annual bonuses — confirm whether your offer includes this.

Release of claims

You are agreeing to give up your right to sue Disney for most employment-related claims, including discrimination, wrongful termination, and wage disputes, in exchange for the severance payment.

This is the most important clause in your agreement. You cannot get the severance without signing it. Make sure you understand what claims you are waiving before you sign.

Non-disparagement

You agree not to make negative statements about Disney, its leadership, or its products. Disney may have a reciprocal obligation, but many agreements are one-sided.

Check whether the clause covers social media, anonymous posts, and reviews on sites like Glassdoor. Broader language means more risk for statements you make online.

Non-solicitation of employees

You agree not to recruit or hire Disney employees for a period after your departure.

Duration and scope matter. A 12-month restriction on hiring former direct reports is standard. A 24-month restriction on anyone you ever worked with is aggressive.

Confidentiality

You agree to keep the terms of your severance agreement — and likely Disney's proprietary information — confidential.

Most confidentiality clauses apply to the agreement's financial terms. Using an automated tool like ClauseForClarity to analyze your document is not a disclosure to a person and generally does not violate confidentiality clauses.

COBRA health coverage

When you leave Disney, you can continue your health insurance under COBRA for up to 18 months — but you pay the full premium. Disney may subsidize this for a period.

Check exactly how many months Disney is covering and whether they are paying the premium or just allowing you to continue coverage at your own cost. These are very different.

Equity and RSU treatment

Unvested Disney stock or RSUs may be forfeited at separation, or may partially vest depending on your grant agreements.

Review your individual equity grant agreements carefully. Some restructuring agreements include accelerated vesting provisions — this could be worth significant value.

Cooperation clause

You may be required to assist Disney with future litigation, investigations, or business matters after your departure.

Check whether the cooperation is compensated and whether there is a time limit. Uncompensated, indefinite cooperation obligations are a significant burden.

Your rights under the ADEA

If you are 40 or older, federal law gives you specific protections. Your agreement must give you at least 21 days to review it (45 days if part of a group layoff), and 7 days to revoke after signing. Any agreement that gives you less time may not be legally enforceable for the age discrimination claims it asks you to waive.

Check your review deadline carefully — it should be printed near the signature line.

Don't sign until you understand what you're agreeing to.

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