Disney reportedly gives metaverse division the axe
The unit reportedly dated back to Bob Chapek's time as CEO
Disney vs Comcast: Which content king should investors buy?
CFRA director, equity research Kenneth Leon and New Street Research managing partner Jonathan Chaplin debate whether Disney or rival Comcast is the better stock for investors to hold on 'The Claman Countdown.'
Walt Disney Co.’s metaverse unit has reportedly been axed.
The entertainment giant has cut the approximately 50 individuals that worked in the division helmed by exec Mike White, the Wall Street Journal reported Tuesday, citing unnamed sources "familiar with the situation." The outlet connected the move to the company-wide reorganization effort recently unveiled by CEO Bob Iger.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 102.68 | +1.66 | +1.64% |
The next-generation storytelling and consumer experiences group working on metaverse strategies for Disney reportedly dated back to Bob Chapek’s tenure as CEO. Early last year, he said the company had been seeking to "create an entirely new paradigm for how audiences experience and engage with our stories," according to the Journal.
In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange. Disney is working on sequels for its "Toy Story," "Frozen" and "Zootopia" franchises as the company concentrates more on br (AP Photo/Richard Drew, File / AP Images)
Back in November, Iger re-assumed the role of Disney’s CEO, a mantle he had previously held for about fifteen years spanning 2005 to 2020.
NBA'S ADAM SILVER, FORMER DISNEY EXECUTIVES ON SHORT LIST TO REPLACE BOB IGER
FOX Business reached out to Disney for comment regarding the metaverse division.
Attendees are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California on September 9, 2022. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
Disney Dreamer Rose "Rosie" Warfield looks on during the Disney Dreamers Academy at Walt Disney World Resort on March 05, 2022 in Lake Buena Vista, Florida. (Al Bello/Getty Images for Disney Dreamers Academy / Getty Images)
The reorganization underway at Disney is, according to February remarks from Iger, seeking to "result in a more cost-effective, coordinated, and streamlined approach" to Disney and its operations. It involves trimming Disney’s workforce by about 7,000 workers total.
DISNEY TO BEGIN LAYING OFF EMPLOYEES
In connection to that, this week marks the layoffs of Disney employees starting. Iger told Disney employees in a company-wide message obtained by FOX Business that two other rounds of layoffs will follow the one commencing this week.
The next one will take place in April. The third, meanwhile, is coming "before the beginning of the summer," according to the memo.