Entertainment giant Disney has reportedly ditched its metaverse division as part of a broader restructuring plan that will see the firm cut its operating expenses by $5.5 billion and lay off 7,000 staff over two months. <\/p>\n
The news was reported by the Wall Street Journal (WSJ) in a March 28 post, citing “people familiar with the matter.”<\/p>\n
All of the metaverse division\u2019s 50 or so members will be left without a new employment contract, with the exception of Michael White, who led the broader consumer-products unit, the WSJ reported.<\/p>\n
The metaverse division is understood to have been created in February 2022 in an effort to create new ways by which Disney audiences can engage with its stories. <\/p>\n
Disney also patented a \u201cvirtual-world simulator\u201d which aimed to facilitate headset-free augmented reality (AR) attractions at Disney theme parks on Dec. 28, 2021. <\/p>\n
The firm also once considered how it could integrate metaverse technology into sports betting. However, nothing serious progressed there. <\/p>\n
Related: <\/em><\/strong>Silicon Valley tech CEOs are not big fans of metaverses <\/em><\/strong><\/p>\n The decision to cut operating expenses and staff count came following a consultation with McKinsey & Co to find cost-cutting opportunities, according to the report.<\/p>\n Unfavorable economic conditions and increased competition in the streaming sector were two of the main factors that led to the decision.<\/p>\n Both Disney\u2019s former and current chief executives, Bob Chapek and Robert Iger once considered the Metaverse to be a very bullish investment opportunity.<\/p>\n Chapek has reportedly described the Metaverse to be \u201cthe next great storytelling frontier,\u201d while Iger previously worked as a director and adviser in Genies, a digital avatar platform running on Dapper Labs\u2019 Flow blockchain.<\/p>\n Cointelegraph reached out to Disney for comment but did not receive an immediate response.<\/p>\n