According to reports, the metaverse division of Disney has unfortunately succumbed to the latest wave of layoffs, which the company has announced as part of its cost-cutting measures.
Apparently, the entire team of 50 individuals responsible for shaping the future of storytelling and enhancing consumer experiences through next-generation technology has been let go.
This is undoubtedly a significant loss for Disney, as the metaverse represents the next frontier of immersive entertainment and engagement with audiences.
Why Did Disney Axe the Division?
Many believe that is a shame that such a forward-thinking division had to bear the brunt of the company’s financial restructuring.
However, people remain hopeful that the remaining teams at Disney continue to push the boundaries of what is possible in the world of entertainment.
Disney’s cost-cutting measures, aimed at reducing its headcount by 7,000, with the objective of saving $5.5 billion, will be carried out in three phases.
In an internal memo to its employees, Disney’s CEO explained that these actions are part of a broader strategic realignment of the company, aimed at creating a more effective and streamlined approach to its business.
It’s unfortunate that Disney had to take this step, especially since the metaverse holds tremendous potential for the future of entertainment.
Nonetheless, it’s possible that Disney may reevaluate its decision at a later date and consider investing in the metaverse once again.
Despite the complete dissolution of the metaverse unit at Disney, Mike White, who was appointed to head the unit in 2022 has managed to retain his position at the company. Unfortunately, White is now the sole remaining member of the team.
Will Disney Pursue its Metaverse Projects Later?
It remains to be seen whether Disney will revisit its strategy for the metaverse in the future or whether it will focus on other areas of innovation and growth.
Regardless, Disney’s foray into the metaverse was a clear sign that the entertainment industry is evolving rapidly and that companies must be willing to adapt to stay ahead of the curve.
Despite the initial hype surrounding the metaverse, it seems that the industry may be experiencing a slowdown in 2023.
Meta, formerly known as Facebook, was one of the first major companies to embrace the metaverse and bring the concept to the mainstream.
However, the company has also been impacted by the industry slowdown, announcing 10,000 layoffs in March 2023.
In a statement, Meta CEO acknowledged the importance of the metaverse to the company but also highlighted that the single largest investment was focused on advancing AI and integrating it into all of Meta’s products.
It remains to be seen how the metaverse industry will evolve in the coming months and years. While some experts believe that the current downturn is just a temporary setback, others are more skeptical about the long-term viability of the concept.
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