The Walt Disney Company, one of the world’s leading media conglomerates, has made the decision to shut down its metaverse division amidst an economic downturn, resulting in the layoff of 50 employees.
Reported by The Wall Street Journal (WSJ), this move comes as Disney grapples with macroeconomic challenges, leading to the closure of its metaverse department. Established in February 2022, the division was part of a broader initiative that saw the company reducing its workforce by a total of 7,000 positions, as indicated by industry experts.
This cessation of Web3-focused activities was part of a strategy developed in consultation with McKinsey & Company, aimed at identifying cost-saving measures. Despite this, Disney’s CEO, Bob Chapek, had previously emphasized the significance of the metaverse as a burgeoning area ripe with investment potential.
He highlighted the importance of the metaverse to Disney’s future, noting it as a key component in diversifying the audience and aligning with the company’s forward-looking technology agenda.
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