News Bob Iger outlines the need to transform the Walt Disney Company resulting in 7000 job losses and $5.5 billion in cost savings

[DCBaker]

More details -

"Mickey Mouse has left the metaverse.

Walt Disney Co. has eliminated its next-generation storytelling and consumer experiences unit, the small division that was developing metaverse strategies, according to people familiar with the situation, 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.

Headed by Mike White, a former Disney consumer-products executive, the division was tasked with finding ways to tell interactive stories in new technological formats using Disney’s extensive library of intellectual property, the people said.

All of the team’s roughly 50 members have lost their jobs, the people said. Mr. White remains at the company, although what his new role will be is unclear.

Mr. White couldn’t be reached for comment.

Disney’s former chief executive, Bob Chapek, hired Mr. White in February 2022, telling employees in an internal memo at the time that the goal was to “create an entirely new paradigm for how audiences experience and engage with our stories.”

Mr. Chapek, who was succeeded as CEO by Robert Iger in November, had described the metaverse as “the next great storytelling frontier.”

Plans for Disney’s metaverse strategy remained sketchy a year after the division was created, although the company had hinted that the new technology might have applications in fantasy sports, theme-park attractions and other consumer experiences.

Mr. White was also involved in an effort last year to design a membership initiative that in some ways resembled Amazon.com Inc.’s Prime program, which would integrate customer data across multiple Disney platforms, including streaming service Disney+, online retail operations and smartphone apps that visitors to Disney’s theme parks use to purchase food, merchandise and other products.

That effort has also been abandoned, according to people familiar with the matter."

Full article below.

WSJ News Exclusive | Disney Eliminates Its Metaverse Division as Part of Company’s Layoffs Plan

The elimination is part of a broader restructuring that is expected to reduce head count by around 7,000 across the company over the next two months.

www.wsj.com

 

[Sirwalterraleigh]

You know that $18 an hour is insufficient but simultaneously have no idea what is sufficient? That makes no sense.

None of the economists on the planet have an answer for this…

…”strong am I with the force…but not that strong…”


And as we have said on many of these labor threads: the problem with this country, philosophy, state, Orlando…
…is that they gobble up any wages immediately in price gouging

…sorry…we’re currently calling it “inflation”

So upward mobility that generates better workforce and increases disneys profits and efficiency is sadly a unicorn

 

[Sirwalterraleigh]

More details -

"Mickey Mouse has left the metaverse.

Walt Disney Co. has eliminated its next-generation storytelling and consumer experiences unit, the small division that was developing metaverse strategies, according to people familiar with the situation, 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.

Headed by Mike White, a former Disney consumer-products executive, the division was tasked with finding ways to tell interactive stories in new technological formats using Disney’s extensive library of intellectual property, the people said.

All of the team’s roughly 50 members have lost their jobs, the people said. Mr. White remains at the company, although what his new role will be is unclear.

Mr. White couldn’t be reached for comment.

Disney’s former chief executive, Bob Chapek, hired Mr. White in February 2022, telling employees in an internal memo at the time that the goal was to “create an entirely new paradigm for how audiences experience and engage with our stories.”

Mr. Chapek, who was succeeded as CEO by Robert Iger in November, had described the metaverse as “the next great storytelling frontier.”

Plans for Disney’s metaverse strategy remained sketchy a year after the division was created, although the company had hinted that the new technology might have applications in fantasy sports, theme-park attractions and other consumer experiences.

Mr. White was also involved in an effort last year to design a membership initiative that in some ways resembled Amazon.com Inc.’s Prime program, which would integrate customer data across multiple Disney platforms, including streaming service Disney+, online retail operations and smartphone apps that visitors to Disney’s theme parks use to purchase food, merchandise and other products.

That effort has also been abandoned, according to people familiar with the matter."

Full article below.

WSJ News Exclusive | Disney Eliminates Its Metaverse Division as Part of Company’s Layoffs Plan

The elimination is part of a broader restructuring that is expected to reduce head count by around 7,000 across the company over the next two months.

www.wsj.com

Thank god…

What a stupid, DOA nonsense concept that was.

You know what they should do?

Build rides and sell better stuff on shop Disney.

“If it ain’t broke, Walt…”

 

[Sirwalterraleigh]

I also think all those films you listed are going to disappoint.

They are really pumping the tires of the little mermaid

And the cyber world is gonna overreact no matter what it does

 

[MisterPenguin]

They are basically Hydra at this point.

Hail Iger!

 

[MisterPenguin]

Mr. White was also involved in an effort last year to design a membership initiative that in some ways resembled Amazon.com Inc.’s Prime program, which would integrate customer data across multiple Disney platforms, including streaming service Disney+, online retail operations and smartphone apps that visitors to Disney’s theme parks use to purchase food, merchandise and other products.

No buggy nascent 2nd Life reiteration and no Disney Prime data tracking program?

How am I to get personalized Augmented Reality pitches from Gaston and Hercules to join a Disney Adventure body-builders' Disney cruise to France and Greece?

 

[TP2000]

How am I to get personalized Augmented Reality pitches from Gaston and Hercules to join a Disney Adventure body-builders' Disney cruise to France and Greece?

Throw a few port excursions onto the itinerary in southern Italy, and maybe Turkey, and I could be persuaded.

 

[Nubs70]

A 'living wage' varies so much based on location, circumstance, etc. Its very difficult to just pick a number when you don't know all the info. That number in Orlando is far different than what it is in Podunk.

The only way you can determine a "Living Wage" is by the Government:
1. Setting the wage
2. Setting the price of goods
3. Controlling what the individual consumer can buy.

This is a Command Economy.
Command Economies have been tried.
Command Economies have all failed.

 

[Br0ckford]

More details -

"Mickey Mouse has left the metaverse.

Walt Disney Co. has eliminated its next-generation storytelling and consumer experiences unit, the small division that was developing metaverse strategies, according to people familiar with the situation, 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.

Headed by Mike White, a former Disney consumer-products executive, the division was tasked with finding ways to tell interactive stories in new technological formats using Disney’s extensive library of intellectual property, the people said.

All of the team’s roughly 50 members have lost their jobs, the people said. Mr. White remains at the company, although what his new role will be is unclear.

Mr. White couldn’t be reached for comment.

Disney’s former chief executive, Bob Chapek, hired Mr. White in February 2022, telling employees in an internal memo at the time that the goal was to “create an entirely new paradigm for how audiences experience and engage with our stories.”

Mr. Chapek, who was succeeded as CEO by Robert Iger in November, had described the metaverse as “the next great storytelling frontier.”

Plans for Disney’s metaverse strategy remained sketchy a year after the division was created, although the company had hinted that the new technology might have applications in fantasy sports, theme-park attractions and other consumer experiences.

Mr. White was also involved in an effort last year to design a membership initiative that in some ways resembled Amazon.com Inc.’s Prime program, which would integrate customer data across multiple Disney platforms, including streaming service Disney+, online retail operations and smartphone apps that visitors to Disney’s theme parks use to purchase food, merchandise and other products.

That effort has also been abandoned, according to people familiar with the matter."

Full article below.

WSJ News Exclusive | Disney Eliminates Its Metaverse Division as Part of Company’s Layoffs Plan

The elimination is part of a broader restructuring that is expected to reduce head count by around 7,000 across the company over the next two months.

www.wsj.com

This sounds like they are talking in code. Mr. White. Mr White is still at the company. Mr White couldn't be reached for comment. Mr White was involved in an effort.

 

[EPCOT-O.G.]

They are really pumping the tires of the little mermaid

And the cyber world is gonna overreact no matter what it does

GOTG comes out a few weeks before TLM. Finite amount of marketing dollars / bandwidth to use company to promote. Time and time again Disney has stepped on its own box office with the release calendar.

Spider-Man Multiverse animated film comes out a week after TLM.

Then in mid-June Disney’s Elemental comes out, and will be competing with Transformers and The Flash.

Then two weeks later Indiana Jones.

So, in a two month window Disney has to promote and market FOUR big tent, four quadrant films. GOTG, TLM, Elemental, and Indy. At a time many of those people charged with the marketing efforts just got (or will have gotten) pink slips.

If I had to guess, I’d say GOTG3 and Indy get the preference here. Then TLM, and then Elemental.

This reminds me of November/December when Disney had to promote Black Panther, then Strange World, then Avatar in like a month and a half time frame (with little competition).

 

[EPCOT-O.G.]

This sounds like they are talking in code. Mr. White. Mr White is still at the company. Mr White couldn't be reached for comment. Mr White was involved in an effort.

Reservoir Dogs

 

[Sirwalterraleigh]

GOTG comes out a few weeks before TLM. Finite amount of marketing dollars / bandwidth to use company to promote. Time and time again Disney has stepped on its own box office with the release calendar.

Spider-Man Multiverse animated film comes out a week after TLM.

Then in mid-June Disney’s Elemental comes out, and will be competing with Transformers and The Flash.

Then two weeks later Indiana Jones.

So, in a two month window Disney has to promote and market FOUR big tent, four quadrant films. GOTG, TLM, Elemental, and Indy. At a time many of those people charged with the marketing efforts just got (or will have gotten) pink slips.

If I had to guess, I’d say GOTG3 and Indy get the preference here. Then TLM, and then Elemental.

This reminds me of November/December when Disney had to promote Black Panther, then Strange World, then Avatar in like a month and a half time frame (with little competition).

Well I see your point…
…but what do you do when your pictures flatline in 3 weeks at the box office?

Only 2 movies…2 had any sort of legs last year.

So it’s a cluster on multiple levels

 

[Br0ckford]

Well I see you’re point…
…but what do you do when your pictures flatline in 3 weeks at the box office?

Only 2 movies…2 had any sort of legs last year.

So it’s a cluster on multiple levels

They need to maybe just calm down a bit. If theaters are gonna survive ( if that's possible) they need to make movie releases seem like a can't miss events again.

 

[Sirwalterraleigh]

They need to maybe just calm down a bit. If theaters are gonna survive ( if that's possible) they need to make movie releases seem like a can't miss events again.

Maybe they should do some high budget reboots?

 

[Br0ckford]

Maybe they should do some high budgets reboots?

View attachment 706862

No, just....no

 

[Sirwalterraleigh]

No, just....no

Why?

Everything was “perfect”…just “magical” in every way

 

[Sorcerer Mickey]

It's like the seasons man... studios know this too. They all don't abandon ship just because they didn't repeat the success of the last major blockbuster.

In the last decade+ the MCU boosted Disney like a turbo making it seem like king of the world. But everyone knows that peak isn't forever. That's why they are always working on the next thing too.

The MCU definitely boosted Disney but it wasn't alone. Disney produced seven of the top ten domestic grossing movies in 2019. Two of those were Marvel's. Star Wars, Pixar, Disney Animation, and live-action remakes were also huge business. I almost feel like Disney+ tanked all of those things.

 

[Touchdown]

This summer season seems like such a bust. I’m very excited for the Mario movie, and Oppenheimer, cautiously optimistic for GotG3 and Spiderverse (I still remember the disappointment that was Lego Movie 2,) and that’s about it. Everything else is on the range of meh-no way. Unless something else gets stellar reviews I’m probably not going to watch it.

 

[Drdcm]

They need to maybe just calm down a bit. If theaters are gonna survive ( if that's possible) they need to make movie releases seem like a can't miss events again.

I agree with this. The only movie I’ve been excited about in the last few years is John Wick 4, which is pretty sad. I can just wait until all the marvel movies come to home video/streaming. None of the animated movies have interested is either, so can do the same. No reason to go see 4 superhero movies a year in theaters. Honestly, I wonder how much Disney+ harms their own box office.

 

[EPCOT-O.G.]

Pinging @Sirwalterraleigh

Lots and lots of discounts across the board. 25%-30% off hotel rooms throughout the summer. Now 30% off of SW: Galactic Starcruiser for APs. All happening as a new quarter begins.

Anything to take away from these moves?