Disney’s Metaverse unit, responsible for creating immersive experiences, will join first this week.
Disney metaverse is the first to go as part of a broader restructuring
The Walt Disney Company will shut down its Metaverse division as part of a restructuring that will cut about 7,000 jobs across the company over the next two months.
According to The Wall Street Journal (WSJ), the Metaverse division was led by former Disney consumer products executive Mike White. This unit was responsible for coming up with ways to tell interactive stories in new digital formats using his IP from Disney. However, the storytelling unit moves first. This is due to his CEO Bob Iger confirming the layoffs will begin this week.
All 50 members of the team lost their jobs. White will remain with the company and will be assigned to a different department.
Former Disney CEO Bob Chapek said he hired White in February 2022 to establish “a whole new paradigm for how audiences experience and engage with [Disney’s] stories.” The Metaverse is “the next great storytelling frontier,” according to Chapek. However, their Metaverse strategy remained stagnant, and there have been no major movements since the unit was launched.
Moreover, investors are pressuring Disney to eliminate non-essential businesses. Last year, the company hired consultants from McKinsey & Company to help identify cost-cutting measures. In late February, Disney announced it would cut $5.5 billion in costs and 7,000 jobs as part of a larger restructuring plan rice field.
Disney’s membership program similar to Amazon Prime will also be discontinued. Previously, White was responsible for integrating customer data across all his Disney platforms. Given the latest withdrawal, it’s unclear if Disney will return to the Metaverse space, or if he’ll embrace emerging technologies like Web3 in the future.
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