Disney closes metaverse division

Disney closed its metaverse division. Again, against the backdrop of a significant cost reduction.

According to The Wall Street Journal, Disney closed its metaverse division and laid off about fifty members who made it up as part of a larger restructuring program. This team was born just over a year ago when former Disney CEO Bob Chapek appointed Mike White to oversee a team tasked with finding interactive ways for Disney to tell stories through new technology. While members of the unit have lost their jobs, Mike White continues to work, although his new position is unknown.

Disney closes metaverse division

His plan to launch an Amazon Prime subscription service for Disney would also be cancelled. This would create a unique user experience for Disney+, the company’s retail operations, and the apps customers use to shop for food and merchandise at theme parks.

Bob Chapek was optimistic about the future of Disney and its metaverse. In particular, he stated several times that the company has succeeded in “blending. .. physical and virtual experiences.”He called the metaverse “the great new frontier for storytelling”. That being said, the closure of that division doesn’t necessarily mean that Disney is permanently abandoning its metaverse ambitions. As noted by The Journal, Bob Iger, who returned to the CEO position to replace Bob Chapek in November 2022, showed again and again that he saw a future in the metaverse when he joined the board of directors of a virtual goods startup.

And here, against the backdrop of a significant reduction in costs

While Bob Iger may have a different strategy now, it will probably be some time before we hear about it. Disney is currently under significant pressure from its investors to take serious cost-cutting measures, and the US giant has already announced it will lay off about 7,000 employees. According to TechCrunch, this will be done in three phases, with the first starting this week. The Metaverse team may be just one of those affected by this major Disney restructuring effort. In a memo obtained by TechCrunch, Bob Iger says the company will be laying off employees next April and will notify the last affected employees before the summer begins.