Walt Disney has removed metaverse plans from 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 card, which involves cutting staff by nearly 7,000 people across the company over the next two months.
The Metaverse is no longer a priority for Disney
According to a WSJ report, Disney CEO Robert Iger said the layoffs would begin this week. The Metaverse Division had nearly 50 members, all of whom lost their jobs. Its chief, Mike White, was promoted to senior vice president of consumer experiences and platforms in February 2022 and tasked with deepening the entertainment company in the Web3 space.
Although White was not ousted in the downsizing, the executive’s ability to function going forward is still unclear.
Reports also suggest that Disney was under tremendous pressure from investors to shut down non-essential businesses. As such, the company has brought in consultants from McKinsey & Co. to help reduce costs. However, this decision was not well received by some of the main content managers.
More recently, Disney announced plans to make $5.5 billion in cuts in addition to cutting 7,000 jobs amid significant economic headwinds, fierce streaming competition and falling TV revenue. by cable as well as the theatrical box office which has pressured many major media companies.
Metaverse, for its part, is a long-term bet. This is far from a common occurrence. Short-term revenue generation doesn’t seem to be in the cards. This has frustrated many tech companies that have poured billions of dollars into the effort in recent years.
Meta playing the long game
The Mark Zuckerberg-led company’s metaverse projects are burning money and falling flat. In 2022, the virtual/augmented reality arm of Meta lost $13.7 billion.
Despite the negative sentiment surrounding the space, Meta has no intention of eliminating or reducing its metaverse efforts. The team expects the division’s full-year losses to increase in 2023 and plans to invest “significantly” in this area. Zuckerberg previously said he was playing the long game while addressing naysayers in the Metaverse.
“Look, I understand a lot of people might disagree with this investment, but from what I can tell, I think it’s going to be a really big thing. People will look back a decade from now and talk about the importance of the work done here.”
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.