Walt Disney Co. announced Tuesday, it is giving a one-time cash bonus of $1,000 to 125,000 employees. They are also investing $50 million to create a new higher education program for workers.
“We are directing approximately $125 million to our cast members and employees across the country and making higher education more accessible with the launch of this new program,” CEO Bob Iger said in a statement.
Nearly 88,000 hourly employees in the U.S. will be able to take advantage of Disney’s education initiative.
“I have always believed that education is the key to opportunity; it opens doors and creates new possibilities,” Iger said. “Matched with the $1,000 cash bonus, these initiatives will have both an immediate and long-term positive impact.”
The new education initiative is designed to cover tuition costs for hourly employees, and going forward it will continue to receive $25 million in annual funding, Disney’s statement said.
The entertainment giant is just one of a number of companies handing back money to its employees since the December passage of the Tax Cuts and Jobs Act of 2017, which lowered tax rates for corporations. AT&T, Wells Fargo, Boeing, Comcast, Bank of America and Walmart are just a few who have passed along the new tax benefits to workers.
As for the bonuses, they are for full and part-time employees in the United States who have been with the company since Jan. 1. For those who are eligible the bonus will be given in two parts, the first in March and the next in September. Executive level employees are exempt.
The two initiatives will cost the company $175 million this fiscal year. Disney said its current ongoing education reimbursement program will continue to be open to all full-time employees with no changes.