We’ve seen The Walt Disney Company go through the wringer lately.
©Disney | Walt Disney Company Headquarters
After Bob Iger returned as CEO, more executive shakeups followed, and we learned that Disney would be making $5.5 billion in spending cuts — including reducing its workforce by 7,000 jobs. And now, with a Thanos-like snap of the fingers, an entire department and program have been eliminated.
By now, you’ve probably heard the term “metaverse” tossed around a time or two — and it’s something Disney has even dabbled in. The future of Disney is all about cutting-edge technology with the merge of technological and physical experiences, from rides and attractions to accessories and more in Disney Parks — or at least, it was.
©Disney
According to The Wall Street Journal, Disney has “eliminated its next-generation storytelling and consumer-experiences unit,” which was the team responsible for coming up with “metaverse strategies.” The cuts were made as part of Disney’s $5.5 billion spending reduction, which includes layoffs.
©Reuters | Disney CEO Bob Iger
The metaverse was described as “the next great storytelling frontier” by former CEO Bob Chapek, who brought on Mike White in February 2022 to pioneer the new program. White was also part of the team responsible for designing a membership service for Disney that functioned like Amazon Prime.
The membership program was designed to integrate “customer data across multiple Disney platforms, including streaming service Disney+, online retail operations and smartphone apps” — like the My Disney Experience and Disneyland apps.
Prime
Essentially, people would pay for a membership that packaged “streaming, parks, and merchandise offerings together,” along with other special perks. Disney created this initiative in an effort to better link its products and services in the parks and “real world” to the digital world.
But, with the nearly 50 job cuts just made to this department — Disney’s Prime-like membership program is no longer moving forward.
Main Street Train Station Disney World
Despite Iger’s interest in the metaverse, pressure from investors to tighten the spending on nonessential businesses likely had something to do with this decision to eliminate the department and place focus and resources elsewhere.
As of now, Mike White remains at Disney — though details on what his new or future role will be have not yet been shared.
©Alberto E. Rodriguez / Getty Images
These job cuts come just after Bob Iger shared a memo with Cast Members indicating the layoffs would begin this week — but this is just the start. A second round of job cuts will be made in April, with the final round of cuts expected to happen before the start of the summer.
Iger shared, “The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here.” He offered his thanks to those who will be departing the Company.
©Disney
We’ll be keeping an eye on these layoffs and more news from The Walt Disney Company, so stay tuned to DFB for more.
Our handy (and portable!) ebook guides make sure you get the best deals and can plan a vacation of a lifetime.
You said “another” project but this is just about the meta verse which I’m pretty sure I just read from you last time in the huge project cancel announcement?
Any case I’m sorry people lost their jobs but don’t really care about the metaverse I don’t think we need it.
Raise the prices and cut the service at Disney. More of the demise of Disney. What happens when you let the accountants run the company and drive it into the ground.
So, no real loss here, we need less linked between real and digital and bring more back to the real world.
Yet, Universal is opening another complete theme park. Kind of makes you wonder how Universal is not only competing but also trying to exceed Disney.