January 22, 2009

Disney offers executives buyout deals

Walt Disney Co. said it offered more than 600 resort executives buyout deals to cut costs while the U.S. economy plods through a recession.

The company said involuntary layoffs would be announced if not enough executives choose to accept the deals offered Wednesday, the Orlando, Fla., Sentinel reported.

More than half the 313 buyouts offered were delivered to executives in Orlando, Fla., the Sentinel said.

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, Disney's senior vice president of human resources Jayne Parker wrote in a letter accompanying the buyout offers.

With the economic slowdown, Morgan Stanley analysts projected a 7 percent drop in attendance at Wall Disney World and Disneyland in 2009.

Given the continued uncertainty of the economic environment, we must manage our business even more productively, Disney spokeswoman Leslie Goodman said in a statement.