Disney’s Metaverse Dream Crashes: 50 Staff Cut in Cost-Cutting Move

• Disney recently laid off its metaverse team as part of its company-wide staff reduction.
• The conglomerate had jumped on the Web3 bandwagon, much like all other major entertainment companies.
• Last month the company announced that budget cuts for around $5.5 billion would soon be happening in the company, which would mean eliminating around 7000 jobs as a part of a broader restructuring.

Disney’s Metaverse Team Laid Off

Disney has been forced to rethink expensive dream projects which are not bringing in any immediate revenue and has recently terminated 50 people who comprised its metaverse team as a part of this initiative. It looks like the metaverse team was just part of the casualties due to a need to “streamline” business operations and control costs.

Disney’s Web3 Initiatives

The entertainment giant had jumped on the Web3 bandwagon, much like all other major entertainment companies, by selecting Polygon as its blockchain partner and undergoing resource deployment for Web3 and hiring initiatives for several positions; one of these include an in-house legal counseling position involving NFTs, blockchain, metaverse, and DeFi.

Leadership Changes at Disney

In February 2022, former CEO Bob Chapek brought Mike White to head the metaverse division with the goal of developing interactive storytelling using Disney’s extensive library of intellectual property. Soon after Bob Iger took over the company’s leadership from Chapek last month and announced budget cuts for around $5.5 billion with plans to eliminate around 7000 jobs as a part of a broader restructuring.

What Is Happening To Metaverse Projects?

Although Mike White has retained his job after all other members were let go from the metaverse team, it is uncertain what will happen with ongoing projects within this realm since Disney is questioning their continued value in light of recent economic downturns.

Is The Metaverse Dream Crashing?

After leading companies such as Meta shelving their NFT project and now Disney cutting back on its own initiatives, it appears that even powerful conglomerates are not shielded from current economic struggles resulting in potential changes or even termination of ambitious projects such as those within the metaverse space.