Even Mickey Mouse Has Left... The Metaverse Bubble Bursts Deeply

Metaverse Strategy Department Disbanded After 1 Year
Disney Lays Off 50 Team Members...Intensive Restructuring

Global content company Walt Disney recently laid off about 50 employees from its metaverse (3D virtual reality) strategy team due to business downturn-related restructuring, the Wall Street Journal (WSJ) reported on the 27th (local time).

WSJ, citing informed sources, reported that Disney dismantled the Next-Generation Storytelling and Consumer Experience department responsible for developing metaverse strategies, stating, "Mickey Mouse left the metaverse after just one year."

Mickey Mouse [Image source=Reuters Yonhap News]

This is part of a broader restructuring expected to result in about 7,000 layoffs over the next two months.

Sources said that all approximately 50 employees in the metaverse-related department lost their jobs.

Disney is under pressure from investors to significantly reduce non-essential business sectors. Last year, when the company hired McKinsey consultants to explore cost-cutting measures, some senior content executives opposed the move.

In February, Disney announced plans to cut costs by $5.5 billion (about 7.2 trillion won) and reduce its workforce by around 7,000 through restructuring.

Many major media companies are facing such pressures due to economic headwinds, fierce competition in the streaming industry, and declines in cable TV and movie theater box office revenues.

Meanwhile, as the popularity of the metaverse fails to rise, tech companies that bet on new entertainment formats are reportedly facing setbacks, WSJ said.

This content was produced with the assistance of AI translation services.