Disney Company has gotten rid of its metaverse unit that has been developing new forms of storytelling for this era. The division operated within the Disney office with around 50 staff, but as part of the restructuring plan under CEO Bob Iger, the whole team was terminated.

It was reported that as the metaverse division is dissolved, all of its employees are leaving as part of the first round of Disney’s ongoing layoffs. Iger recently announced that the job cuts are officially starting this week.

Disney Company was one of the major firms that entered the metaverse business in 2021. CNBC mentioned that it was the previous chief executive, Bob Chapek, who set up the company’s metaverse unit to have a group within the firm that will focus on the metaverse business and developments.

The team was led by Mike White, who was the head of the company’s consumer experiences and platforms before being assigned to lead the metaverse team. When the group was first introduced, Chapek said that White had been tasked to “connect the physical and digital worlds” for Disney’s entertainment business.

But unfortunately, as the metaverse team was abolished under Iger’s leadership, all of its staff were terminated as well. Only White was retained, but what his new role would be is unclear.

The Wall Street Journal reported that sources who are familiar with the situation at Disney confirmed that all 50 members of the metaverse team had lost their jobs. The publication stated that the slow growth in the popularity of the metaverse has been frustrating for many tech firms that have set up units for new entertainment formats as well.

In fact, Meta Platforms initially had big plans for the metaverse that it even adapted to be used as the company’s new name. However, it suffered big losses in its foray into the virtual world, which just shows that the metaverse biz is slow, and Disney could have seen this; thus, it decided to eliminate the team as part of the restructuring and just focus on improving its business and services.

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