Tencent and Bytedance, two Chinese tech giants, are reportedly planning to execute a significant number of job cuts in their metaverse divisions. Tencent acknowledged that it is making some staff adjustments, amid rumors of hundreds of layoffs at its extended reality division, while Bytedance also plans to cut staff at Pico, its metaverse headset subsidiary.
Tencent and Bytedance are reportedly getting rid of staff dedicated to the metaverse
Tencent and Bytedance, two of the largest Chinese tech companies, plan to execute hundreds of layoffs in their metaverse development groups according to various reports. Tencent, which is 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 media, the company said more than 300 employees who should be looking for new job opportunities and that the extended reality division, dedicated to the development of metaverse products, would be disbanded. The company confirmed he was making personnel adjustments as his plans had changed, but he dismissed the idea of the aforementioned group disbanding.
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 its profitability. The sources stated:
Under the new strategy of the company as a whole, it no longer quite fit.
Bytedance facing problems
Bytedance’s Pico, the headphone hardware division of the metaverse, is also facing similar difficulties and plans to cut hundreds of jobs. According to the South China Morning Post, some company groups are expected to lose 30% of their employees due to these layoffs, who could also reach higher level positions.
The company recently launched its latest Pico series, hoping to develop a foothold in Asian markets. The launch had been successful, with reports claiming the company owned 15% of the VR headset market, compared to nearly 85% controlled by Meta’s offerings. Henry Zhou, founder and CEO of Pico, stated that they expected to sell more than 1 million headphones.
These reports come during a global push for large companies to scale back their efforts in manufacturing metaverse-based hardware and software, reducing expenses in the field. Microsoft and Meta, two Western tech giants, have also taken similar actions.
Microsoft is shutting down several metaverse-focused groups as part of its round of layoffs of 10,000 employees. Meanwhile, Meta, which anticipated it will continue to lose money in the metaverse in 2023, is planning another round of layoffs after taking a 13% payroll cut last year.
What do you think about the new metaverse-related layoffs at Tencent and Bytedance? Tell us in the comment section below.
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