The Walt Disney Company, the well-known entertainment behemoth, seems to have lost interest in the metaverse, as reports suggest that the metaverse division of Disney has fallen victim to the latest round of layoffs announced by the company. This move is part of a strategic realignment of the company that aims to cut costs by $5.5 billion and create a more effective, coordinated, and streamlined approach to their business.

According to the Wall Street Journal, the whole next-generation storytelling and consumer-experience unit, comprised of 50 people, has been axed, as CEO Bob Iger announced on March 27. Mike White, who was tapped to lead the now-defunct unit back in 2022 by former Disney CEO Bob Chapek, was the only one who evaded the axe, and the future for White at the organization remains uncertain at the moment.

Disney aimed to enter the metaverse in 2022, seeking new markets in which to introduce its intellectual properties. At the time, Chapek profiled the metaverse as a pillar to establishing various initiatives including the implementation of digital experiences. However, the metaverse industry seems to be experiencing a slump in 2023, with companies involved in metaverse development possibly facing problems getting funding. Axios indicates that only a little more than $500 million has been raised so far this year, compared to about $2 billion raised through March 2022.

It remains to be seen what impact this latest development will have on Disney’s overall business strategy. However, it is clear that the metaverse division is no more, and the optimism that once surrounded it seems to be fading.

Stay tuned to CoinTopper for more news!