Walt Disney is refocusing its priorities and is no longer pursuing Metaverse strategies, according to reports. The entertainment giant is eliminating its entire “next-generation storytelling and consumer experiences” division, which had almost 50 members, as part of its restructuring plan.
The head of the Metaverse division, Mike White, has been promoted to SVP of consumer experiences and platforms, but it is unclear in what capacity he will function in the future.
Disney’s move comes as the company seeks to make $5.5 billion in cuts and reduce its headcount by nearly 7,000 across the company over the next two months.
Reports suggest that the company was under pressure from investors to cut non-essential businesses. To assist with the cost-cutting opportunities, the company hired consultants from McKinsey & Co. However, some top content executives were not pleased with this move.
While Disney may have dropped its Metaverse plans, Meta (formerly Facebook) continues to invest “meaningfully” in the area, despite facing significant losses.
Meta’s virtual/augmented reality arm lost $13.7 billion in 2022, but the company expects full-year losses for the division to increase in 2023. Meta CEO Mark Zuckerberg has expressed his commitment to the Metaverse, saying that it is a long-term bet and that people will talk about the importance of the work being done here in a decade’s time.
