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Disney reportedly eliminates its metaverse division as part of layoffs

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Disney plans to cut 7,000 jobs in order to save $5.5 billion in costs.

Disney has reportedly eliminated its metaverse division just over a year after announcing it, in the first of a planned three rounds of layoffs.

Last month, the Walt Disney Company announced plans to cut 7,000 jobs in a bid to save $5.5 billion in costs and make its streaming business profitable.

Disney CEO Bob Iger said the reorganisation “will result in a more cost-effective, coordinated approach to our operations”.

“While this is necessary to address the challenges we face today, I do not make this decision lightly,” he added.

Metaverse team includes around 50 staff

Per a report in the Wall Street Journal, the metaverse team is thought to include around 50 employees.

The next-generation storytelling and consumer experiences unit was created to develop Disney’s metaverse strategies.

It was announced in February 2022, when Disney’s former CEO Bob Chapek appointed Mike White to lead the division.

“For nearly 100 years, our company has defined and redefined entertainment by leveraging technology to bring stories to life in deeper, more impactful ways,” Chapek said in a memo last year.

“Today, we have an opportunity to connect those universes and create an entirely new paradigm for how audiences experience and engage with our stories.

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“This is the so-called metaverse – which I believe is the next great storytelling frontier and the perfect place to pursue our strategic pillars of storytelling excellence, innovation, and audience focus.”

In July 2022, Disney hired Mark Bozon, a former creative and gaming executive for Apple, to help oversee the company’s metaverse plans.

In November, Iger returned to his role Disney’s CEO, replacing Chapek. By January, Disney had changed some of the most unpopular policies at its theme parks in the US.

Iger later admitted that Disney’s theme park pricing strategies were “too aggressive” in the company’s “zeal to grow profits”.

Images: Disney

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Bea Mitchell

Bea is a journalist specialising in entertainment, attractions and tech with 10 years' experience. She has written and edited for publications including CNET, BuzzFeed, Digital Spy, Evening Standard and BBC. Bea graduated from King's College London and has an MA in journalism.

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