Ending development of the metaverse is just one part of Disney’s plan to streamline the system and lay off mass.
Along with the decision to close the metaverse division , Disney will also lay off the team of about 50 people working here as part of a company-wide restructuring plan, according to the WSJ .
Just a year ago, former CEO Bob Chapek hired veteran Mike White to lead the new division, tasked with finding interactive ways to tell Disney stories using new technology. With the new decision, all employees will be unemployed, except for Mike, but it is not clear what his next role will be at the company
Not only the metaverse division, the plan to release a subscription service similar to Amazon Prime is also said to be “trash”. This project was expected to create a unified user experience for Disney+, the company’s retail operations, and apps that people use to buy food and merchandise at Disney parks.
Chapek was once full of hope and optimism about the future of “Mickey Mouse” as he approached the metaverse, believing the company would excel at “combining the physical experience with the digital”. The former CEO also calls the metaverse “the next storytelling frontier”.
But closing the division doesn’t mean Disney has given up on its ambitions for virtual space technology. Bob Iger – who replaced Chapek as CEO of the company since November 2022, still shows his belief in the future of the metaverse. According to Engadget , it is not ruled out that Mr. Iger has other plans that he has not yet announced.
Recently, Disney has been under constant pressure from investors eager to implement cost-cutting measures. The company has announced that it is about to cut 7,000 jobs, divided into 3 phases and start implementing this week. A major layoff could happen in April and the next one before the start of this summer