Disney Shelves Metaverse Plans, Releases 50 Employees: What Happened?

The metaverse dream appears to be fading for some major players. In a significant move, Disney has laid off its entire metaverse team, impacting approximately 50 employees, signaling a retreat from its earlier ambitions in the virtual world. This news follows similar decisions by other companies reassessing their metaverse investments.

Disney's Metaverse Team Disbanded Amidst Wider Layoffs

The shutdown of Disney’s metaverse group came on Monday, coinciding with the initial phase of the company's plan to cut 7,000 jobs. This restructuring is spearheaded by interim CEO Bob Iger and aims to reduce costs by $5.5 billion.

Walt Disney Co. (DIS -0.64%) has eliminated its next-generation storytelling and consumer-experiences unit, a small division that was specifically dedicated to developing metaverse strategies. The Wall Street Journal reported that Walt Disney Co. had disbanded its metaverse division earlier today.

Cost-Cutting Measures Drive Metaverse Exit

Disney reportedly plans to lay off 7,000 jobs as Bob Iger, the interim CEO, strives to reduce costs. The cut was announced on Monday, with more layoffs to be expected as part of this broader restructuring initiative.

Disney Joins Growing List of Companies Abandoning Metaverse Ambitions

Disney has joined a growing list of companies scaling back their metaverse efforts. Now, Disney has joined this list after setting up a team back in 2022, showing a shift in strategy regarding futuristic digital experiences. Disney laid off its entire metaverse team, which included around 50 people, in recent cuts. It's the latest firm to abandon its metaverse ambitions, despite assembling a dedicated team previously.

While the future of Disney's metaverse involvement remains unclear, this move signifies a significant reassessment of its priorities under Iger's leadership.