- Disney has reportedly closed its metaverse department in a restructuring move
- The department had 50 employees who have since been sent home
- The move is part of the company’s wider plan to reduce its overall workforce by 7,000 employees before June 2023
Disney has reportedly closed its metaverse department in a restructuring move meant to reduce the company’s overall workforce by 7,000 employees before June this year. The department had 50 staff and who have since been sent home according to people familiar with the matter. The move adds to a growing list of companies slashing their headcount to survive the prolonged bear market and a dwindling economy.
Metaverse Head Remains
According to the Wall Street Journal, which quoted sources close to the developments, the entertainment company has kept the metaverse department’s head Michael White, who was involved in other tasks outside the unit. The unit, which is slightly over a year old, was created to conjure new formats of telling interactive stories derived from the company’s wide array of intellectual property.
The company has in the past fronted ideas such as offering sports betting in the metaverse and introducing augmented reality (AR) in its theme parks. However, despite the company’s current and former CEOs, Robert Iger and Bob Chapek, showing interest in the virtual world, it had a somewhat fuzzy metaverse strategy.
7,000 Employees to Go in Cost Reduction
Shutting down the metaverse department is part of the company’s plan to lay off roughly 7,000 employees before June this year to reduce its operating costs by over $5 billion. Disney’s move comes at a time when traditional, crypto, NFT and blockchain companies are considering layoffs as the best way to cut costs to survive the harsh economic times.
NFT startup Candy Digital, for example, laid off close to a third of its employees. Kraken and Gemini have also been accused of shady staff cuts. Leading NFT marketplaces OpenSea and Magic Eden have also reduced their workforce within the last one year.
With Disney’s metaverse head still around, it’s likely the company will resurrect the department once the economy and crypto space stabilizes.
