Disney CEO Bob Iger told the company on Monday they will begin laying off some of their 7,000 staff on the chopping block, this week. This will be the first round of employee cuts following the unofficial announcement in February.
According to The Wall Street Journal, Disney has shut down its metaverse division as well, laying off its 50+ members as part of a broader restructuring process.
Speaking to WSJ in August 2022, Disney’s Chief Communications Officer Kristin Schake said, “Technology is giving us new ways to customize and personalize the consumer experience so that we are delivering entertainment, experiences and products that are most relevant to each of our guests. A membership program is just one of the exciting ideas that is being explored.”
However, executive plans to launch an Amazon Prime-like subscription service for Disney has also been canned.
“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly,” Iger said in the memo. “In tough moments, we must always do what is required to ensure Disney can continue delivering exceptional entertainment to audiences and guests around the world – now, and long into the future.”
Disney has been under pressure from investors to implement cost-cutting measures, hence the reasoning behind the layoffs. According to Tech Crunch, the layoffs will be happening in three rounds with the metaverse team taking the first “restructuring” hit.
The 7,000 job cuts represent about 3% of Disney’s global workforce.
In the words of Disney, “A dream is a wish your heart makes” but apparently, Disney has been the place where dreams go to die – at least when it comes to someone’s potential “dream job.”
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