Disney’s Metaverse division appears to be involved in the latest round of layoffs announced by the company. The entire 50-person Next Generation Storytelling and Consumer Experience unit has been laid off, according to a Wall Street Journal report by a person “familiar with the situation,” part of a 7,000-person layoff that the company is implementing as a cost-cutting measure.
Disney’s Metaverse division is no more, reports
Known as the entertainment giant, Disney seems to have lost interest in the Metaverse, according to areportreaching us from the Wall Street Journal (WSJ), in the latest round of layoffs announced on the 27th by CEO Bob Iger, the company’s Metaverse division was completely dismantled.
The measures, which will be implemented in three installments, are aimed at reducing Disney’s workforce by 7,000 employees and cutting costs by $5.5 billion. In amemosent to employees, Iger justified the move, saying it was part of a strategic reorganization of the company that included “significant cost-cutting measures necessary to create a more effective, coordinated, and rational approach to business.”
Named by former Disney CEO Bob Chapek to lead the now-defunct unit in 2022,Mike White was the only one to escape the axe as all 50 employees of the Metaverse unit were laid off. White’s future in the organization remains uncertain for now.
Optimism is fading
Disney was looking for a new market to introduce its intellectual property to, with the goal of entering the Metaverse in 2022. At the time, Chapek positioned the Metaverse as a pillar for establishing a variety of initiatives, including the creation of digital experiences; in a memo issued in February 2022, Chapek declared:
Each team in the company was exploring this new canvas, and I I was overwhelmed by what I saw. Today, we have the opportunity to connect these universes and create a whole new paradigm for how viewers experience and engage with our stories.
However, the metaverse industry appears to be slumping in 2023, with Axios indicating that companies involved in metaverse development may face financing problems, with about $2 billion raised through March 2022 compared to just over $500 million so far this year He cites.
Meta, one of the first major companies to pivot to Metaverse and put the concept on the mainstream map, also signaled other interests to pursue after announcing 10,000 layoffs On March 16, Mark Zuckerberg, Meta’s CEO, said, “Metaverse is a very important part of our business, said that while Metaverse remains an important part of the business, the single largest investment is focused on advancing and incorporating AI into each of Meta’s products.
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