Disney is undergoing significant transformation as it plans to lay off around 7,000 workers worldwide to save up to $5.5 billion. The cost-cutting measures have started to take effect, with the company expecting to begin the final round of layoffs notifications before summer.
The Elimination of the Metaverse Unit
As part of this transformation, the company has recently eliminated its metaverse unit responsible for developing new technologies and interactive stories using Disney’s intellectual property library. This division had around 50 employees, all of whom have been laid off, including the leader of the division, Mike White.
The metaverse unit was considered one of Disney’s next-generation storytelling and consumer experiences units with highlights aimed towards creating interactive stories in immersive formats using Disney’s library of intellectual property. However, with the low-demand for developing metaverse technology from companies like Meta and confusion among users on the usage of this new technology beyond gaming, Disney had to cut down costs.
The elimination of the metaverse unit raises questions about Disney’s future strategies for interactive storytelling and virtual experiences. However, Bob Iger, CEO of Disney, believes that this transformation will increase the company’s profitability.
A Difficult Transition for Affected Employees
Disney acknowledges that saying goodbye to talented and dedicated employees affected by layoffs is a challenging process. All employees will receive severance packages and job placement support as they transition into their next opportunities.
ESPN Also Facing Job Cuts
ESPN, a subsidiary of Disney, also faces job cuts due to cost-cutting measures undertaken by the company. Although it is unclear how many jobs will be cut from ESPN’s workforce, it is expected that there will be significant cuts implemented soon.
Despite a hiring freeze at ESPN, job vacancies continue to appear online for specific areas, including social media experts and electricians. However, the fate of the remaining ESPN employees who will not be affected by the job cuts remains uncertain.
Sonia Coleman was recently appointed as chief human resources officer for Disney, having held senior roles at both ESPN and Disney in the past. She will play a crucial role in providing support to employees during these difficult times.
Potential Landing Spots for ESPN Workers
With current job vacancies in NBC Sports, CBS Sports, and Fox Sports, former ESPN staff members may find alternative positions in these companies.
Disney executives, including Jimmy Pitaro, chairman of ESPN, have agreed on the need to cut costs across the company. These cost-cutting measures will likely create challenges, especially for employees at Disney’s subsidiaries like ESPN.
In conclusion, Disney’s cost-cutting measures are affecting all its subsidiaries as it undergoes a significant transformation aimed at increasing its profitability. The elimination of the metaverse unit and impending job cuts are difficult transitions for affected employees. With severance packages and job placement support provided by Disney, we can hope that affected employees will find suitable opportunities elsewhere.
Image Source: Wikimedia Commons
