Disney Ends Metaverse Plans and Lays Off Staff Amid Cooling Market

Disney has made the decision to end its expansion plans into the metaverse, a virtual world created by the convergence of multiple virtual platforms. As part of a broader company-wide restructuring, about 50 employees who were developing strategies for Disney’s expansion into the metaverse have lost their jobs. The employees were responsible for using Disney’s intellectual property to tell interactive digital stories. Although it is unclear why Disney has decided to stop this business unit, it is worth noting that other major companies that also invested in the development of metaverse have scaled back their efforts in recent months. According to Cathy Hackl, chief metaverse officer at innovation and design consultancy Journey, the metaverse market is experiencing a “cooldown moment,” which is not necessarily a bad thing, as many Web3 natives are still building despite the downcycle.