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  • Tencent and Bytedance will conduct staff cuts in their metaverse.

  • The metaverse development teams at Tencent and Bytendence are planning to lay off hundreds of employees.

  • The company's founder and CEO, Henry Zhou, expects to sell more than 1 million headsets.

Tencent and Bytedance will make staff cuts in their metaverse branches, with Tencent the augmented reality branch and Bytedance the Pico division. You can find specialized headsets for the metaverse.

Two of China's largest internet corporations, Tencent and Bytedance, want to make hundreds of staff cuts in their metaverse development department. Tencent has withdrawn its participation in metaverse hardware development and Bytedance is known to have advised its 300 employees to find other jobs. In the augmented reality segment, which companies promised to bring attractive virtual goods, it is now announced that it will be dissolved.

According to sources, Tencent's dedicated ring controller project for the metaverse has been shelved due to high capital costs and poor profit forecasts.

The project was seen as no longer fully consistent with the updated approach that the entire company had adopted.

Bytedance plans to lay off employees at Pico, the hardware division for metaverse headset devices, with staff cuts of about 30% in each department. The company just announced the Pico line of devices and holds 15% of the VR headset market. Henry Zhou, the company's founder and CEO, predicts they will sell more than 1 million headsets.

These allegations come amid a global push for major corporations to reduce their metaverse software and hardware development efforts and result in spending cuts in this area. Meta and Microsoft are IT companies in the Western region that also have similar moves.

As part of a wave of layoffs of 10,000 employees, Microsoft is creating teams focused on the metaverse. After cutting 13% of its staff last year, Meta, which forecasts a metaverse by 2023, is contemplating another wave of layoffs.

The post Tencent and Bytedance cut Metaverse operations was first published on Today NFT News.