Disney Cans 50-Strong Metaverse Division

WASHINGTON, DC - JUNE 05:  The Walt Disney Company Chairman and CEO Robert Iger delivers remarks during an event introducing Disney's new

Disney has laid off its 50-strong metaverse division as part of wider redundancies at the entertainment giant (lead image: Disney CEO Bob Iger).

The team, led by Mike White, executive vice president, next generation storytelling & consumer experiences, had been charged with developing metaverse strategies. It also had been tasked with finding new ways to tell interactive stories using Disney’s extensive back catalogue.

According to sources familiar with the matter, all 50 members of staff have lost their jobs but White will remain. It is unclear what his new role will be.

Disney’s former chief exec, Bob Chapek, hired White in February last year and told employees in an internal memo at the time that the division’s goal was to “create an entirely new paradigm for how audiences experience and engage with our stories.”

Chapek had also described the metaverse as “the next great storytelling frontier.” However, the new CEO Iger clearly did not feel the same.

Disney had hinted that the tech created by its metaverse division could have applications in fantasy sports, theme-park attractions and other consumer experiences, its overall plans remained sketchy, even after a year in operation.

Last month, Disney announced that it would make US$5.5 billion (AU$8.2 billion) in cuts and eliminate 7,000 jobs as part of a wider restructuring. Economic headwinds, stiff competition in streaming and dwindling revenues from cable TV and the cinematic box office were all cited as reasons for the layoffs.

While the metaverse had been seen by some as the next big thing in marketing and brand-consumer relationships, there have been few successful initiatives. Even Facebook parent Meta, which has been seen as the driving force behind the metaverse, has been struggling to attract users and make an even halfway appealing proposition.

Meta’s Reality Labs division, which is responsible for all of Meta’s metaverse work, has been losing literally billions of dollars and frightening some investors and analysts.




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