Disney recently laid off 50 people from its metaverse division, the unit that was working on advanced storytelling and customer experiences. This move is part of 7,000 layoffs across their company that’s meant to cut costs.
Disney’s Impactful Layoffs
Disney, the company we all know and love, has lost its focus on the metaverse. The Wall Street Journal reported that Bob Iger, Disney’s CEO, closed down the entire department of the metaverse unit on March 27th due to layoffs.
Disney announced that they’ll be reducing their number of employees by 7,000 people to save up to $5.5 billion. In a memo sent to its staff, the company’s leader Bob Iger explained why this move is needed: it’s part of making Disney better organized and run more efficiently.
Mike White was hired by former Disney CEO Bob Chapek back in 2022 to lead a certain team. Unfortunately, this team was shut down, but Mike was the only one who got to keep his position there. Sadly, all 50 people working for this team had to be let go. We don’t know what will happen to Mike at Disney now.
Disney Dives Into Digital Experiences
Disney wanted to get into the virtual world in 2022 and they planned to bring their fun stuff there. Mr. Chapek said that this is an important way to let people try out different digital experiences. He sent a notice saying so in February of 2022.
People from our company are doing really cool work. We can combine these cool things to make an awesome way for people around the world to be part of our stories.
The metaverse industry seems to be struggling in 2023. This means that companies creating the metaverse are having a hard time getting money for their projects. During March 2022, these same companies got over two billion dollars but this year, so far they have only gotten around half a billion dollars.
Meta is one of the first companies that made the concept of metaverse popular to everyone. Recently, they announced 10,000 layoffs and said that they are looking into other interests. Mark Zuckerberg, Meta’s CEO, said that even though metaverse progress is still important for their business, their main investment now focuses on developing artificial intelligence and integrating it in all their products.
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