The 50-person metaverse team at Disney was fired as part of a larger workforce layoff, putting the House of Mickey Mouse’s metaverse plans on hold.
A Wall Street Journal article from March 27 claims that Disney’s efforts to restructure its operations will have an impact on its metaverse division. In an effort to cut costs, the company is in the middle of terminating 7,000 employees.
Disney chose Polygon as its native blockchain in 2022 when it first expressed interest in the metaverse. In addition to advertising a position for an in-house lawyer for NFTs and decentralized finance at the time, the firm started hiring for its metaverse division (DeFi).
According to WSJ, the company’s ambitions for the area were still only loosely defined more than a year later.
With the corporation dismantling its metaverse operation, it joins the growing list of traditional companies walking out of the Web3 market after temporarily dipping their toes.
On its Facebook and Instagram pages, Meta recently announced that it would stop supporting non-fungible tokens (NFTs).
Its price performance follows the general decrease in the broader crypto market that suffered a drawdown following the Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance.