Disney no longer believes in the metaverse. While Meta (Facebook, Instagram, WhatsApp) is now more focused on artificial intelligence than the metaverse, the entertainment group is ending its activities in the field.
In February, Disney announced the layoff of 7,000 people. These job cuts include the small division in charge of developing strategies in the metaverse, indicates the Wall Street Journal. It had about fifty employees.
“Creating a new paradigm”
The goal of the “Next Generation Consumer Experience and Storytelling” unit was to design interactive stories based on new technologies, including the metaverse. All while drawing from the Disney group’s vast library of intellectual property.
The company’s former CEO, Bob Chapek, had formed this division by placing Mike White (former head of consumer products for the group) in February 2022. At the time of appointment, he indicated that the ambition was to “create a new paradigm”. . . But these priorities don’t appear to be on the agenda for new CEO Bob Iger, who took over from 2005-2020.
Disney’s restructuring plan aims to save $5.5 billion. In addition, it is about improving the profitability of the group’s streaming platforms. As subscriber numbers may rise on Disney+, video-on-demand offerings were still extending their losses late last year.
Source: BFM TV
