Bob Iger, CEO, Disney, during CNBC interview, Feb. 9, 2023.
Randy Shropshire | CNBC
Disney reportedly cuts metaverse division under Iger’s restructuring
All 50 of the employees under White were let go, according to the report, but White remains at the company. His new role remains unclear.
Disney never explicitly outlined what it planned to do with the metaverse, but Chapek said in a 2021 earnings call that Disney was creating “unparalleled opportunities” for consumers to engage with its products and platforms.
“Suffice it to say our efforts to date are merely a prologue to a time when we’ll be able to connect the physical and digital worlds even more closely, allowing for storytelling without boundaries in our own Disney metaverse,” he said during the call.
Chapek was succeeded by Bob Iger, who returned to Disney’s helm late last year.
The latest layoffs were initially announced in February and will impact about 7,000 employees, according to a memo sent by Iger. The job cuts will be cross-company, hitting Disney’s media and distribution division, parks and resorts, and ESPN.
Since returning as CEO, Iger has reorganized the company and acknowledged that he’d consider selling Hulu. The layoffs are part of a broader effort to reduce corporate spending and boost free cash flow. Disney said last month it plans to cut $5.5 billion in costs, including $3 billion in content spend.
Disney will host its annual shareholder meeting April 3.
Read more from The Wall Street Journal.
— CNBC’s Alex Sherman contributed to this report.
