China's Alibaba has Reportedly Slashed Jobs in Metaverse Division
China's e-commerce giant Alibaba is reportedly scaling back its metaverse ambitions amid the rapid
growth of AI. According to the South China Morning Post (SCMP), Alibaba is cutting dozens of positions
within its metaverse division, with sources suggesting the company aims to restructure and enhance
efficiency. Previously, Alibaba invested $60 million (roughly Rs. 504 crore) in Nreal, a Chinese AR
glasses maker, as part of its metaverse initiatives.
Alibaba's metaverse unit is called Yuanjing, which was reportedly established back in 2021. As per
reports, the latest job cuts from Alibaba's Yuanjing unit are impacting the teams in Shanghai and
Hangzhou.
The exact number of layoffs within Alibaba's metaverse unit remains undisclosed, and the company has yet
to release an official statement on the matter.Crypto Firms Including Robinhood, Kraken Launch Global
Stablecoin Network
As per the SCMP report, ‘billions of yuan' have been poured into Alibaba's metaverse unit, which employs
a ‘few hundred' workers.
The metaverse is a blockchain-powered virtual ecosystem where users interact as digital avatars. Within
these immersive, lifelike digital worlds, people can socialize, work, shop, play games, and enjoy
entertainment—all from the comfort of their homes.
In recent years, excitement around the metaverse has fluctuated significantly. Brands like Lamborghini,
Samsung, and Apple have explored the metaverse as a way to engage with younger audiences.Facebook,
Nvidia Ask US Supreme Court to Spare Them from Securities Fraud Suits
Since its launch in 2020, Mark Zuckerberg's Meta has faced consecutive losses in its metaverse-focused
division, Reality Labs, which reported further declines as recently as April. Similarly, China's Baidu
has shifted focus from the metaverse to AI. Last year, following Baidu's pivot to generative AI, its
head of AI development resigned.
Despite the reported layoffs, Alibaba is expected to retain its Yuanjing unit, which will continue
research and development focused on metaverse use cases, the report notes.
Back in June 2023, blockchain firm Near Foundation had entered a partnership with China's Alibaba Group
to help developers build on its blockchain infrastructure.
.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width:
100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute;
top: 0; left: 0; width: 100%; height: 100%; }
