Disney Layoffs 2026: What’s Happening & Severance Rights in Canada

Disney began layoffs on April 14, 2026 — expected to affect as many as 1,000 employees. (The Associated Press)

“Over the past several months, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect from Disney,” CEO Josh D’Amaro said in a memo to staff.

“Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce to meet tomorrow’s needs.”

This page explains:

• What’s happening with Disney layoffs
• Who’s most affected
• Whether a layoff at Disney is permanent
• How much severance Disney employees in Canada may be owed
• What to do before signing a severance offer

Disney Layoffs: A Timeline of Recent Job Cuts

Disney has significantly restructured several times in recent years, with job cuts that have affected teams linked to Canadian operations.

• June 2025: Disney is cutting several hundred roles across global film, TV, marketing, casting, and finance teams.
• March 2025: Disney is cutting jobs in Vancouver as it shifts away from long-form animation.
• June 2023: Walt Disney’s Pixar cuts 75 jobs, including “Lightyear” executives.
• March 2023: Disney is shedding 7,000 jobs after losing billions of dollars on its Disney+ streaming platform.

Who’s Affected by the Latest Round of Layoffs?

The latest round of job cuts at Disney reportedly affects a variety of divisions, including:

• Traditional television (i.e. ESPN)
• Marvel Entertainment
• Product and technology staff
• Certain corporate functions

It remains unclear if Canadian workers are impacted. The entertainment giant currently employs more than 500 people in the country, according to LinkedIn.

Disney is a provincially regulated employer — meaning most non-unionized employees are governed provincial employment standards, not the Canada Labour Code.

Is a Layoff at Disney Temporary or Permanent?

For non-unionized employees at Disney, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Disney to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Disney Canada Staff

In Canada, non-unionized employees, including those at Disney, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Disney employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Disney Layoffs

A wrongful dismissal occurs when major employers, including Disney, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Disney labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Disney don’t reduce their legal obligations in Canada.

Laid Off at Disney? Next Steps

If you’ve been laid off at Disney in Canada:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Disney Layoffs: Frequently Asked Questions

How much severance can Disney employees receive?

Up to 24 months — depending on age, service, and position.

Are layoffs at Disney permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Disney have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Disney terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at Disney?

No. Unionized employees at Disney must go through their union.

Lost Your Job? Get Help Now

If Disney has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.