Disney Layoffs: Shutting down of its metaverse unit as part of a broader restructuring
Disney, a globally acclaimed media and entertainment company, has eliminated its entire metaverse division.
Highlights
- Disney has fired its metaverse team
- The company has let go of its 50 employees
- In February, it revealed reducing the headcount by around 7,000 across the company over the next two months
As per the reports, Disney has sacked its next-generation storytelling and consumer experiences unit, i.e., the Metaverse division, thus letting go of 50 of its employees. However, the head of the division, Mike White, has been retained at the company, though this role remains unclear.
Interestingly, Mike White was hired in February 2022 and was tasked with "connecting the physical and digital worlds" for Disney Entertainment.
More rounds of layoffs to come
Reports suggest that the above-mentioned layoffs are the first of a planned three rounds of layoffs at the company. In fact, the said move is part of a broader restructuring plan that is expected to reduce the headcount by around 7,000 across the company over the next two months. Further, the company also plans to decrease corporate spending and boost free cash flow.
These layoffs were initially declared in February and the job cuts will be cross-company, impacting Disney’s media and distribution division, parks and resorts, and ESPN.
It must be noted that Disney’s plans for metaverse strategy remained in haste a year after the division was created, although the renowned media company signaled that the new technology may have applications in theme-park attractions, fantasy sports as well as other consumer experiences. However, with the removal of the metaverse universe, Disney’s future metaverse ambitions remain unclear.
Slow growth in metaverse upsets big firms
Disney is not the only company struggling to deliver on big metaverse ambitions. Experts opine that many renowned companies appear to be becoming frustrated by slow growth in metaverse-user numbers. For instance, Meta, the parent company of Facebook and Instagram, shifted billions of dollars to the metaverse only to find decreased demand and skepticism among users about how to use the technology.
