A layoff notice from Disney starts five time-sensitive clocks that most employees don't know about. Disney announced on September 29, 2026 that it's cutting approximately 300 employees across its media divisions as part of a continuing restructuring under new CEO Josh D'Amaro. The specific roles and business units affected haven't been fully disclosed publicly.
What follows is every deadline you face right now, in the order it arrives. Start at the top.
- File for California unemployment at edd.ca.gov today; benefits are not retroactive.
- Don't sign your severance agreement yet; you have 21 to 45 days to review it.
- You have 60 days to elect COBRA; coverage is retroactive if you wait.
- ISO holders: you have 90 days from termination to exercise and keep ISO tax treatment.
- Check your 401(k): you have 60 days to complete an indirect rollover without tax penalties.
What happened
Disney confirmed the cuts on September 29, 2026. The layoffs span multiple divisions under new CEO Josh D'Amaro and are part of a broader restructuring effort the company has been executing over the past year. Severance terms have not been publicly disclosed.
What should you do first?
File for unemployment insurance today. This is the one action with no wiggle room. California's Employment Development Department does not pay benefits retroactively for days before you file. Every day you wait is a day of potential benefits you can't recover.
File online at edd.ca.gov. California's maximum weekly benefit is $450.1 That's the ceiling, not a guarantee; your actual amount depends on your prior wages. Before you file, get your identity verification set up through ID.me, which California now requires for all new UI claims. Delays in ID verification are the most common reason claims stall.
A few things to know before you submit your claim:
- California has a one-week unpaid waiting period before benefits start.
- Most claims take two to three weeks to process after the waiting period.
- If you receive a lump-sum severance, it may affect your benefit start date; report it honestly when asked.
Once your claim is in, move to the next item on this list.
What should you do about your severance agreement?
A severance agreement is a legal contract. Disney offers you money; you sign away certain rights, usually including the right to sue for age discrimination. Don't sign it the day you receive it.
If you're 40 or older, the Older Workers Benefit Protection Act (OWBPA) guarantees you at least 21 days to review an individual severance offer.2 Because Disney is cutting roughly 300 employees at once, this likely qualifies as a group termination program under federal law. In that case, the review window extends to 45 days.2 The company cannot pressure you into signing early, and signing early doesn't shorten the revocation window.
After you sign, you have 7 more days to revoke.2 The agreement isn't final until that window closes.
What to look for before you sign:
- Is the severance amount calculated by a formula (years of service x weekly pay), and does the math check out?
- Does it require you to release age discrimination claims? If so, OWBPA protections apply.
- Are there non-compete or non-solicitation clauses that would limit your next job?
- What happens to your unvested equity on termination?
- Is there a cooperation clause requiring you to assist with litigation?
Consider having an employment attorney review the agreement before you sign. Many offer flat-fee severance reviews. Given the size of this layoff, it's worth the cost.
What about your health insurance?
Losing your job is a qualifying event under COBRA. You have 60 days from your termination date or the date you receive your COBRA election notice, whichever is later, to decide.3 COBRA coverage is retroactive to the day your employer coverage ends, so you can wait until you actually need medical care before paying your first premium.
The average COBRA premium for individual coverage in 2026 is $703 per month.4 That's the full premium, which is what you paid combined with what Disney paid, plus a 2% administrative fee. For most people, that's a significant jump from what they were paying as an employee.
Your alternative is the Marketplace. Losing employer coverage triggers a 60-day Special Enrollment Period on healthcare.gov, which runs parallel to your COBRA window.5 Depending on your income for the rest of 2026, a Marketplace plan with premium tax credits could cost less than COBRA. It's worth running both numbers before you decide.
One important thing: don't let both windows close without making a choice. If you miss both the COBRA election and the Marketplace SEP, you're uninsured until the next open enrollment period.
Do you have equity or stock options?
Disney is a public company and grants equity to many employees. What happens to your equity when you're laid off depends on the type of grant and what your award agreement says.
Incentive Stock Options (ISOs): You have 90 days from your termination date to exercise your vested ISOs and keep their favorable tax treatment under IRC Section 422.6 After 90 days, any unexercised ISOs convert to non-qualified stock options (NQSOs), and you lose the ISO tax advantage. For ISOs held longer than two years from grant and one year from exercise, gains qualify for long-term capital gains rates. Exercising ISOs can also trigger the Alternative Minimum Tax, so talk to a CPA before you act.
Non-Qualified Stock Options (NQSOs): Your award agreement will specify the post-termination exercise window, which can range from 30 days to several years. Check your grant documentation now.
RSUs: Unvested RSUs typically forfeit on your termination date. Anything already vested that hasn't been delivered yet should settle according to the normal schedule. Check your Fidelity or Schwab account (whichever Disney uses) and your equity award agreement to confirm what vested as of your last day.
Pull up your award agreements from the equity platform and make a list of every grant: type, grant date, vesting schedule, and expiration date. Do this in the first week. The 90-day ISO clock doesn't pause.
What about taxes on your severance?
Severance pay is ordinary income, and the IRS treats it as supplemental wages. Disney will withhold federal income tax at the supplemental wage rate of 22% on the first $1 million of severance.7 If your combined income for 2026 puts you in a higher marginal bracket, 22% won't cover your full tax liability and you may owe money at filing.
The Q3 2026 estimated tax deadline was September 15, 2026, which has already passed. The next estimated tax deadline is January 15, 2027, for Q4 2026. If you received a large lump-sum severance and the 22% withholding isn't enough, consider making an estimated payment before then to avoid an underpayment penalty.
A few things that affect your total 2026 tax picture:
- If you exercised ISOs this year, the spread at exercise is an AMT preference item.
- COBRA premiums you pay out of pocket are deductible as a medical expense if you itemize (subject to the 7.5% AGI floor).
- Unemployment benefits are federally taxable income; consider withholding 10% from your UI payments now to avoid a surprise next April.
What happens to your 401(k)?
Your vested 401(k) balance stays yours. When you leave Disney, you have a few options for what to do with it.
Leave it where it is: Most plans allow this if your balance is above a minimum threshold (often $5,000). This is the easiest option in the short term, but you'll lose access to any employer-specific plan features, and you may pay higher administrative fees than in an IRA.
Roll it to an IRA: A direct rollover means Disney's plan administrator sends the money directly to your IRA custodian. You never touch the funds, so there's no withholding and no tax event. This is usually the cleanest option.
Indirect rollover: If the money is distributed to you first, Disney withholds 20% for taxes. You have 60 days to roll over the full pre-withholding amount to an IRA, including making up the 20% out of pocket.8 If you don't complete the rollover within 60 days, the distribution is treated as taxable income, and if you're under 59.5, you'll also owe a 10% early withdrawal penalty. The direct rollover is almost always the better path.
Don't cash out. The tax and penalty hit on a cash-out can wipe out 30% or more of your balance, depending on your bracket.
Check your post-layoff checklist for a step-by-step rollover guide, including which questions to ask your plan administrator.
Deadlines and rules described here reflect federal law and general state guidelines as of the article date.
The Layoff Guide
The deadlines above apply whether or not you are tracking them. The Layoff Guide from Layoff HQ is a 33-page field guide that covers all twelve post-layoff deadline events in the order they arrive: unemployment, the severance review and revocation windows, COBRA and the Marketplace, your FSA, your equity window, your 401(k), and your taxes. Each event comes with timed checkpoints, the decision math, and the one mistake that costs people the most, plus a fill-in worksheet that turns your last day worked into your complete personal deadline calendar. One-time purchase. No subscription. Instant download, with a 14-day full refund if it is not useful.
Get The Layoff Guide, $39 or build your free Decision Calendar.
- California EDD, Calculating Benefit Payment Amounts (2026).
- EEOC, Age Discrimination in Employment Act; 29 U.S.C. Section 626(f) (OWBPA requirements: 21-day individual review, 45-day group review, 7-day revocation).
- U.S. Department of Labor, COBRA Continuation Coverage (60-day election window).
- KFF, Employer-Sponsored Health Insurance (average 2026 COBRA individual premium: $703/month).
- Healthcare.gov, Special Enrollment Periods (loss of job-based coverage triggers 60-day SEP).
- IRS, Publication 525, Taxable and Nontaxable Income; IRC Section 422(a)(2) (ISO 90-day post-termination exercise window).
- IRS, Publication 15 (Circular E), Employer's Tax Guide (22% federal supplemental wage withholding rate).
- IRS, Rollover Chart (60-day indirect rollover rule).