Alibaba Group Holding is scaling down its metaverse operations, according to a source familiar with the matter, making it the latest Big Tech company to pull back resources from the once-popular sector.
Dozens of employees at Yuanjing, the metaverse unit of e-commerce giant Alibaba, have been laid off, as part of a restructuring that aims to optimise and improve efficiency in the organisation, the source said.
Alibaba, owner of the South China Morning Post, did not immediately reply to a request for comment on Friday.
Chinese companies often refer to job cuts as business “optimisation” to avoid drawing unwanted attention from the public.
The lay-offs, which were first reported by Chinese media on Friday, affected Yuanjing’s operations in both Shanghai and Hangzhou, capital of eastern Zhejiang province. Yuanjing, which had received “billions of yuan” in investment, previously employed a few hundred workers, according to a report by online news outlet AI Jingxuanshe.
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Tech companies in China chase metaverse opportunities in immersive virtual online world
Tech companies in China chase metaverse opportunities in immersive virtual online world
The source, however, said the Alibaba unit will continue to exist, with a focus on metaverse applications and tools, as well as providing metaverse-based services to customers.