According to Forbes and WSJ,Walt Disney Co. has eliminated its next-generation storytelling and consumer experiences unit, which was developing metaverse strategies, as part of a broader restructuring that is expected to reduce head count by around 7,000 across the company over the next two months.

The unit, which had about 50 employees, was once seen as developing a new form of storytelling. The first group of Disney employees being laid off will be notified this week, followed by two additional groups before the start of the summer, according to a staff memo seen by multiple outlets.

This is part of the company's plan to cut 7,000 positions, roughly 3.2% of its 220,000 global employees. Iger had previously called the layoffs a "necessary step to address the challenges we face today." Despite the closure of the Metaverse division, Disney has not ruled out exploring immersive technologies in the future as part of its ongoing efforts to enhance the guest experience.