By Scott Kanowsky
Investing.com -- Walt Disney Company (NYSE:DIS) has closed down a small unit responsible for using the metaverse and the media giant's extensive intellectual property library to find new ways to tell interactive stories, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
All of the division's roughly 50 workers have been laid off, the people told WSJ. Its former head Mike White will stay with the company but his future role remains uncertain.
According to the paper, former Disney chief executive officer Bob Chapek had hired White in February 2022 to create a "new paradigm" for audience engagement with the firm's content. The metaverse, in particular, had been described by Chapek, who was replaced by Robert Iger in November, as a "frontier" for storytelling and consumer experiences.
The cuts come as Disney targets a wider revamping of the organization that is expected to lead to the elimination of around 7,000 jobs over the next two months. The $5.5 billion restructuring plan, which was first unveiled in February, follows an uptick in investor pressure to reduce costs amid concerns over economic headwinds and intense streaming competition.