Incoming reports suggest that Disney is reportedly cutting off its metaverse-focused division to reduce costs and restructure.
Metaverse division to go
As the financial space crumbles, tech and entertainment giants have recently cut their costs through layoffs. The latest on the list is Disney.
Recent reports allege that Disney will eliminate its metaverse division to restructure the company. The metaverse division was created in Feb. 2022 and has been operational for over a year.
This division was led by Mr. Mike White and contained 50 team members. Reports suggest that the division was mainly tasked with overseeing developments that will bring new ways for audiences to enjoy Disney stories.
However, the reports allege that the 50 team members will all be laid off as Mr. White gets a reassignment. The cutting down of this unit serves as part of Disney’s global plan to reduce headcount by 7k.
Amid being created a year ago with metaverse intentions, reports allege that the unit has yet to make any significant moves.
The metaverse move was not Disney’s only involvement with the Blockchain landscape. Reports indicate that in early 2022, reports emerged of Disney’s venture into the blockchain landscape, even creating NFT collections.
The NFT collections released by Disney include Mickey Mouse NFT collections, Marvel NFTs, Starwars NFTs, Pixar NFTs, NFT villains, posters and parks, and others. Reports allege that Disney planned to integrate some NFT collections into its metaverse.
It remains unclear whether the shutdown on the metaverse is Disney’s endgame or whether they will return to the investment in the future.
Reports also indicate that Disney stopped plans to develop its membership system similar to Amazon Prime.
Disney’s cost-cutting
Disney has suffered vastly in recent weeks, plunging cable subscriptions and significant streaming losses. In 2022, the company amassed massive losses, according to reports.
Owing to the trouble, reports suggest that Disney investors called the company to explore ways of cutting costs. Disney consulted McKinsey & Co. on the opportunities to cut costs for the company’s betterment.
After the consultations, Disney announced plans to reduce the global workforce by 7,000 jobs. In the announcement, Disney further committed to cutting down around $5.5 billion as the company attempted a restructuring.
