Disney has eliminated its metaverse division as part of a larger plan to cut operating expenses by 5.5 billion USD and lay off 7,000 employees over a period of two months. The report cites anonymous sources. The division's approximately 50 members, except for Michael White, who led the wider consumer products unit, will not be offered new employment contracts.

In December 2021, Disney obtained a patent for a virtual-world simulator intended to allow augmented reality attractions at Disney theme parks without the need for headsets. The company also explored integrating metaverse technology into sports betting, but this concept never advanced. The decision to reduce operating expenses and staff numbers was made following consultations with McKinsey & Company to identify cost-cutting opportunities

The metaverse was once seen as a bullish investment opportunity by both Disney's former and current CEOs, with Bob Chapek describing it as the next great storytelling frontier, and Robert Iger previously serving as a director and advisor for Genies, a digital avatar platform powered by Dapper Labs' Flow blockchain.

Sources:

https://www.investing.com/news/cryptocurrency-news/disney-reportedly-scraps-its-metaverse-division-3041876

https://cointelegraph.com/news/disney-reportedly-scraps-its-metaverse-division

https://www.forbes.com/sites/mattnovak/2023/03/27/disney-scraps-metaverse-division-as-virtual-worlds-become-yesterdays-tech-fad-report/?sh=2761cadf5bcd

https://www.tradingview.com/news/cointelegraph:97f536686094b:0/