According to the WSJ report, Disney has shut down its Metaverse division as part of a strategy to lay off thousands of workers across its theme park, cruise line, and retail companies.
The company will further reduce headcount by around 7000 over the next two months. Disney’s next-generation storytelling and consumer experiences unit, the small division that was developing metaverse strategies, looks like it’s one of the first to go.
The metaverse division is headed by Mike White, who was promoted to the role from SVP of consumer experiences and platforms in February 2022 and charged with getting Disney deeper into the web3 space. The unit aimed to find ways to tell more interactive stories in immersive formats using Disney’s extensive library of intellectual property, according to WSJ.
All 50 or so members of the team have lost their jobs, sources told WSJ. White will remain at the company, but it’s not clear in what capacity.
The Metaverse division was a new effort devoted to researching virtual reality and other immersive digital experiences. The decision to close the Metaverse division comes after Disney revealed plans in October 2020 to restructure its media and entertainment divisions to focus more on streaming and direct-to-consumer programming.
As part of this reorganization, the firm established a new business, Media and Entertainment Distribution, to supervise its streaming services, which include Disney+, Hulu, and ESPN+.
While the closure of Disney’s Metaverse division may be disappointing to those interested in the company’s exploration of virtual reality and immersive digital experiences, it appears to be part of a larger strategy to streamline the company’s operations and focus on its core strengths in content creation and distribution.
Also read: From Metaverse efforts to Massive layoffs: Could Meta recover?
