Tencent, Bytedance Prepare Job Cuts in Metaverse Divisions

• Tencent and Bytedance, two Chinese tech giants, are planning to execute a significant number of job cuts in their metaverse divisions.
• Tencent is making some staff adjustments, while rumors suggest hundreds of layoffs in its extended reality division.
• Bytedance is also planning to cut staff in Pico, its metaverse headset subsidiary.

Chinese Tech Giants Plan Cuts in Metaverse Divisions

Tencent and Bytedance, two of the biggest Chinese tech companies, are planning to execute hundreds of layoffs in their metaverse development groups according to various reports. Tencent has told more than 300 employees that they should be searching for new work opportunities and that the extended reality division dedicated to metaverse products will be disbanded. Meanwhile, Bytedance’s Pico headset hardware division is facing similar difficulties and plans to cut hundreds of jobs with some groups expected to lose 30% of their employees due to these layoffs.

Tencent Making Staff Adjustments

Tencent recognized it is making some staff adjustments amidst rumors of hundreds of layoffs in its extended reality division. The company had been working on a dedicated metaverse ring controller but abandoned the project due to the large investment needed for its construction and unfavorable forecast for profitability. Sources stated: “Under the company’s new strategy as a whole, it no longer quite fit in.“

Bytedance Facing Woes

Bytedance released its latest Pico series recently hoping to develop a foothold in Asian markets with reports claiming 15% market share compared to Meta’s almost 85%. Henry Zhou, founder and CEO of Pico stated they expected to sell more than 1 million headset units. These reports come during a worldwide push for big companies cutting back efforts on making metaverse-based hardware and software reducing expenses in the field. Microsoft and Meta have also announced similar restructuring plans.

Big Companies Cut Back Efforts on Metaverse Development

Microsoft and Meta have announced similar restructuring plans as other tech giants look towards reducing expenses within the field by cutting back efforts on making metaverse-based hardware and software products. This could potentially mean fewer job opportunities available within this sector until further advancements are made within the industry or demand increases significantly again once more people return back into public spaces after restrictions lift around COVID-19 pandemic regulations globally.

Conclusion

Tencent and Bytedance have both announced cost-cutting measures which could mean fewer job opportunities available within this sector until further advancements are made within the industry or demand increases significantly again once more people return back into public spaces after restrictions lift around COVID-19 pandemic regulations globally