Disney canceled the Metaverse project because it fired the Metaverse development team. The company, like many other big companies, is implementing cost-cutting measures.
The Wall Street Journal reported that Disney cut the Metaverse development team to cut costs, citing people familiar with the matter.
According to news outlets, the company is undergoing extensive restructuring and will lay off about 7,000 people in the coming months.
Cost-cutting measures for companies across industries
Disney’s Metaverse team consists of 50 people, all of whom have their positions confirmed. Endedhead of the team, Mike White, will continue in an unknown capacity. became a hot topic.
Disney isn’t the only company implementing cost-cutting measures. Several other companies have taken similar steps during this time of global economic uncertainty. Meta, Microsoft, Google, Twitter and others are also laying off thousands of employees. This does not bode well for an economy hit very recently by the COVID-19 pandemic.
Unemployment is a major theme in 2023 as far as global business is concerned. Layoffs in the crypto industry include Coinbase, Polygon, and Immutable.
As the company responsible for some of the biggest franchises in the world, many will lament Disney’s decision to shut down the Metaverse. It is not yet known if or when it will reopen.
A 2022 report describes how Disney’s Metaverse plans will set the foundation for audience interaction for the next 100 years. The company has IP and technology that could potentially reach hundreds of millions (if not billions) of users, and the hype is perhaps the best ever for a metaverse initiative. bottom.
It also patented a Metaverse amusement park, much to the delight of the cryptocurrency community. The company also posted a job posting related to NFT. Most recently, the Metaverse proponent reappointed Bob Iger as his CEO.
The company’s stock is currently consolidating near a long-term low of about $95 per share.
Tech companies exiting
The Metaverse division appears at the top of many lists of companies working to cut costs. Both Meta and Microsoft have either terminated or significantly scaled back their Metaverse plans.
Meta is having a “year of efficiency,” according to CEO Mark Zuckerberg, with the company’s Reality Labs division imposing high costs on the company.Microsoft had about 100 employees. We have closed down the entire industrial metaverse team.
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