Walt Disney has knocked metaverse plans off its priority list. The entertainment giant’s “next-generation storytelling and consumer experiences” division had been tasked with exploring metaverse strategies.
But now Disney is eliminating the entire division as part of its restructuring map, which entails reducing the headcount by nearly 7,000 across the company over the next two months.
Metaverse No Longer a Priority for Disney
According to a WSJ report, Disney’s CEO Robert Iger said that the layoffs would begin this week. The metaverse division had nearly 50 members, all of which have lost their jobs. Its head Mike White was promoted to the role of SVP of consumer experiences and platforms in February 2022 and was tasked with getting the entertainment company deeper into the web3 space.
While White hasn’t been ousted in the downsizing, in what capacity the exec will function going forward is still unclear.
Reports also suggest that Disney was under tremendous pressure from investors to put a stop to non-essential businesses. As such, the company onboarded consultants from McKinsey & Co. to assist with cost-cutting opportunities. However, this move was not welcomed by some top content executives.
