Disney looks to have become the latest victim of the new round of layoffs announced by the corporation. According to reports from the Wall Street Journal that cite “people familiar with the situation,” the entire next-generation storytelling and user-experience division, comprised of 50 people, has been terminated — as part of the 7,000 job cuts the company is implementing as a cost-saving measure.
Disney’s Metaverse Department Is Gone, Per Reports
The entertainment giant Disney appears to have lost interest in the metaverse. According to reports from the Wall Street Journal (WSJ), the metaverse unit of the company was wholly disbanded in the latest round of layoffs that CEO Bob Iger announced on March 27.
The process, which will be completed in three waves, will reduce Disney’s staff by 7,000, aiming to cut costs by $5.5 billion. In a memo sent to employees, Iger justified this move stating that it was “part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more efficient, coordinated, and streamlined approach to our business.”
Mike White, who was appointed to lead the now-defunct unit back in 2022 by former Disney CEO Bob Chapek, was the only one that escaped the axe, with all 50 employees of the metaverse unit being laid off. The future for White within the company remains uncertain at the moment.
Positivity Fading
Disney sought to enter the metaverse in 2022, seeking new markets in which to introduce its intellectual properties. At the time, Chapek profiled the metaverse as a pillar to launching various initiatives including the implementation of digital experiences. In a memo issued on February 2022, Chapek declared:
Teams across the company are exploring this new canvas, and I’ve been blown away by what I’ve seen. Today, we have a chance to connect these universes and create a completely new paradigm for how audiences experience and engage with our stories.
However, the metaverse industry appears to be going through a slump in 2023. Axios suggests that companies involved in metaverse development may be having issues getting funding, citing about $2 billion raised through March 2022 compared to just a little over $500 million so far this year.
Meta, one of the first major companies to pivot to metaverse and put the concept on the mainstream map, has also suggested that it’s pursuing other pursuits after announcing 10,000 layoffs. On March 16, Meta CEO Mark Zuckerberg stated that while the metaverse remained a key part of the business, the single largest investment was focused on advancing AI and building it into each one of Meta’s products.
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