Disney’s metaverse division has apparently fallen victim to the latest round of layoffs announced by the company. According to reports in the Wall Street Journal citing people “familiar with the situation,” the entire 50-person next-generation consumer experience and storytelling unit has been axed, as part of 7,000 layoffs the company is running as a cost reduction measure.
Disney’s Metaverse division no longer exists, according to reports
Disney, the well-known entertainment giant, seems to have lost interest in the metaverse. According reports Coming from the Wall Street Journal (WSJ), the company’s metaverse unit completely disintegrated in the latest round of layoffs that CEO Bob Iger announced on March 27.
The move, to be completed in three waves, will reduce Disney’s workforce by 7,000, with the goal of cutting costs by $5.5 billion. in a memorandum sent to employees, Iger justified this move by stating that it was “part of a strategic realignment of the company, which includes significant cost-saving measures necessary to create a more effective, coordinated and streamlined approach to our business.”
Mike White, who was struck to lead the now-defunct unit in 2022 by former Disney CEO Bob Chapek was the only one to evade the hatchet, with all 50 metaverse unit employees laid off. White’s future in the organization remains uncertain at this time.
waning of optimism
Disney was aiming to enter the metaverse in 2022, looking for new markets in which to introduce its intellectual properties. At the time, Chapek described the metaverse as a pillar for establishing various initiatives, including the implementation of digital experiences. In a memo issued in February 2022, Chapek stated:
Teams across the company are exploring this new canvas, and I’ve been impressed with what I’ve seen. Today, we have the opportunity to connect those universes and create a whole new paradigm for how audiences experience and interact with our stories.
However, the metaverse industry appears to be experiencing a slump in 2023. Axios indicates that companies involved in developing the metaverse could have trouble getting funding, citing about $2 billion raised through March 2022 compared to just over $500 million so far this year.
Meta, one of the first major companies to move into the metaverse and put the concept on the mainstream map, has also suggested it is pursuing other interests after announcing 10,000 layoffs. On March 16, Meta CEO Mark Zuckerberg stated that while the metaverse was still a key part of the business, the largest single investment was in advancing AI and incorporating it into every single product. of Goal.
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