The Walt Disney Co. recently announced its plan to cut 7,000 jobs, and the company is now starting to notify affected employees of their layoffs. The initial phase of job cuts will affect some workers, with a second and larger round of notices taking place in April. The entertainment company aims to complete the job cuts before the summer and has already eliminated its entire Disney metaverse division of around 50 people, according to a new report from The Wall Street Journal.
The Layoff Process
Disney’s CEO Robert Iger explained that the company is taking steps to build structures and functions that will enable it to be successful moving forward. However, the layoffs are part of a plan to slash $5.5 billion in costs as Mr. Iger outlined his vision for the company. The company expects to complete the job cuts by summer, with the final round of layoffs taking place before the summer season.
Disney’s metaverse division was created in February 2022 when media companies were convinced that Facebook must be on to something. Facebook CEO Mark Zuckerberg announced a bold new plan to focus on the metaverse in October 2021, even changing the company’s name to Meta to emphasize his commitment to that vision. However, the metaverse has become little more than a punchline to many people in the world of tech. As a result, Zuckerberg made a pivot in February, announcing that his company was going to focus on artificial intelligence.
The term “metaverse” refers to a virtual world where people can interact with one another using avatars. The metaverse was touted as the next big thing in tech, but it has faced criticism for being more of a gimmick than a useful tool. However, some companies, including Disney, believed that it could be a valuable platform for next-generation storytelling.
Implications of the Layoffs
The layoff of the entire metaverse division of roughly 50 people has raised questions about Disney’s commitment to exploring the metaverse. While Disney’s metaverse team was led by Mike White, who will remain at the company, the move to cut the entire division suggests that the company is rethinking its approach to the metaverse.
Impact on the Web3/Crypto World
The layoffs at Disney, including the elimination of the entire metaverse division, have significant implications for the web3/cryptocurrency world. The metaverse has been seen as a potential platform for next-generation storytelling, and some companies, including Disney, have been exploring its potential. However, the elimination of the entire metaverse division at Disney suggests that companies may be rethinking their approach to the metaverse and may be less interested in exploring its potential.
This news comes as a surprise to some, as the metaverse has been touted as the next big thing in tech, with companies like Facebook investing heavily in it. However, the metaverse has faced criticism for being more of a gimmick than a useful tool, and some in the tech industry have questioned its potential.
The move by Disney to eliminate its metaverse division may be a signal that the company is shifting its focus to other areas, such as artificial intelligence, which has been seen as a more promising area of development. It remains to be seen whether other companies will follow suit and shift their focus away from the metaverse.
Overall, the layoffs at Disney and the elimination of its metaverse division suggest that the web3/cryptocurrency world may need to re-evaluate the potential of the metaverse as a platform for next-generation storytelling. While the metaverse may still have potential, companies may be less interested in exploring its potential, and this could have significant implications for the future of the technology.
Conclusion
The layoffs at Disney, including the elimination of the entire metaverse division, demonstrate the company’s focus on cutting costs and streamlining its operations. While the metaverse was once considered the next big thing in tech, it has faced criticism for being little more than a gimmick. Disney’s decision to eliminate its metaverse division suggests that the company is rethinking its approach to this technology and may be shifting its focus to other areas, such as artificial intelligence.
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