Walt Disney Company To Buy Out 619 Executives
The Walt Disney Company will buyout 619 executives at it’s U.S. resorts. 313 of the buyouts are being made for executives at Walt Disney World, Disney Vacation Club and Disney Cruise Line. The company is doing this to cut costs during a worsening recession and plans to layoff employees if enough of the buyout packages are not accepted. The employees have until February 6 to accept the deal.
“We hope to achieve our goals with the VSP [voluntary separation plan], but an involuntary layoff with a lesser severance package will be required if our goals are not met,” Jayne Parker, senior vice president of human resources for Walt Disney Parks and Resorts, wrote in a letter to the affected executives.
Analysts at Morgan Stanley believe that attendance at Walt Disney World and Disneyland will drop 7 percent this year and Disney is trying to cut costs to make up for this attendance loss.
