all about cryptop referances
According to reports, Tencent and Bytedance, two Chinese tech giants, are planning to implement a significant number of job cuts in their metaverse divisions. Tencent acknowledged it is making some personnel adjustments, amid rumors of hundreds of layoffs in its augmented reality division, while Bytedance also plans to cut staff at Pico, its metaverse headset subsidiary.
Tencent and Bytedance, two of the largest Chinese technology companies, plan to implement hundreds of layoffs in their metaverse development teams, according to various reports. Tencent, best known for its software business, is currently abandoning its plans to enter the metaverse hardware market, affecting hundreds of company employees.
According to local outlets, the company told more than 300 employees that they should look for new job opportunities and that the augmented reality division, dedicated to developing metaverse products, would be disbanded. The company confirmed that it was making personnel adjustments as its plans had changed, but rejected the idea that the said group would be disbanded.
Tencent had been working on a dedicated metaverse ring controller, but the initiative was abandoned due to the large investment required for its construction, and the unfavorable forecast for profitability. The sources said:
Under the company’s new strategy as a whole, it no longer quite fit in.
Bytedance’s Pico, the hardware division of metaverse headsets, is also facing similar difficulties, and plans to cut hundreds of jobs. According to the South China Morning Post, some groups in the company are expected to lose 30% of their employees due to these layoffs, which could also reach into higher-level positions.
The company recently released its latest Pico series, hoping to develop a foothold in Asian markets. The launch had been successful, with reports claiming the company had 15% of the VR headset market, compared to the nearly 85% controlled by Meta’s offering. Henry Zhou, founder and CEO of Pico, stated that they expected to sell more than 1 million headset units.
These reports come amid a worldwide push for major companies to cut efforts in creating metaverse-based hardware and software, reducing spending in the field. Microsoft and Meta, two Western technology giants, have also taken similar actions.
Microsoft is shutting down several metaverse-focused groups as part of the 10,000-employee layoff round. Meanwhile, Meta, which has expected to continue losing money on the metaverse in 2023, is planning another round of layoffs after carrying out a 13% cut in its workforce last year.
What do you think of the new metaverse-related layoffs at Tencent and Bytedance? Tell us in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
