Disney has terminated its plans for the metaverse, as it has recently disbanded its metaverse development team to reduce costs. This decision is in line with other major corporations that have implemented similar measures.
Reasons for this Move
The Wall Street Journal media outlet has recently reported that the company is carrying out a substantial restructuring, with an estimated 7,000 employees likely to be impacted in the upcoming months.
Disney’s metaverse team, which had 50 members, has been disbanded, with its head, Mike White, continuing in an unspecified role. In 2022, Disney made news when it declared its intentions to develop news metaverse experiences, suggesting that this form of engagement could set a new benchmark for entertainment.
However, the COVID-19 pandemic has had a significant impact on the global economy, prompting several corporations – including Disney, Meta, Microsoft, Google, Twitter, and others – to implement cost-cutting measures. Unfortunately, this has resulted in the layoffs of thousands of employees, which does not bode well for the economy.
Furthermore, 2023 has seen a number of global businesses take the difficult decision to lay off staff, particularly in the crypto industry. Companies such as Coinbase, Polygon, and Immutable have all had to face this difficult reality.
Earlier Disney was Pro-Metaverse
In 2022, numerous reports highlighted the potential of Disney’s metaverse plans to revolutionize audience interaction for the next century. Boasting a huge IP portfolio and cutting-edge technology, this initiative was set to reach billions – and had generated unprecedented hype.
Moreover, Disney had garnered much excitement from the crypto community with its patent for an amusement park in the metaverse. Additionally, the company had also posted a job vacancy related to non-fungible tokens (NFTs). And, to cap it off, Bob Iger was reappointed as CEO, who is known to be supportive of the metaverse.
However, after disbanding its metaverse team, the company’s stock took a considerable hit. Its current stock price is presently stabilizing close to its long-term low of approximately $95 for each share.