Disney Lays Off Metaverse Team Amid Company Restructuring

Disney has laid off its metaverse team as part of a company-wide restructuring effort, according to a report by The Wall Street Journal. The move comes as Disney looks to streamline its operations and cut costs amid a challenging economic climate.
The metaverse team, which was responsible for developing virtual reality and augmented reality experiences for Disney's theme parks and other properties, was reportedly informed of the layoffs last week. The team consisted of approximately 50 employees.
The decision to lay off the metaverse team is part of a larger restructuring effort at Disney, which has been underway for several months. The company has been looking to reduce costs and improve efficiency in the wake of the COVID-19 pandemic, which has significantly impacted its theme park and entertainment businesses.
In addition to the layoffs, Disney has also been looking to sell off some of its non-core assets and focus on its core businesses, such as streaming services and theme parks. Last year, the company announced plans to reorganize its media and entertainment divisions to focus on streaming, with a greater emphasis on direct-to-consumer offerings.
Despite the layoffs, Disney is still committed to developing virtual reality and augmented reality experiences for its theme parks and other properties. However, the company will likely rely on outside contractors and third-party developers to handle much of this work going forward.
The move to lay off the metaverse team has been met with criticism from some in the tech industry, who view virtual reality and augmented reality as key areas of growth in the coming years. However, others argue that Disney's decision is a necessary step to help the company weather the current economic climate and emerge stronger in the long term.