Vanessa
Alibaba Group has reportedly scaled back its metaverse operations and reduced staff numbers significantly within its metaverse division, Yuanjing. This shift is part of a broader realignment toward artificial intelligence (AI), signaling a cooling interest in the metaverse among major tech players.
Launched in 2021, Yuanjing aimed to capitalize on the burgeoning interest in the metaverse, a digital realm that many predicted would be the next iteration of the internet. Despite initial investments and efforts to secure a foothold in the virtual landscape, the division is now facing significant layoffs as the Chinese multinational company reallocates resources to more promising technology areas, particularly AI.
This strategic pivot follows a pattern observed across the tech industry, where companies are shifting their focus from metaverse projects, which have not delivered on their hype, to AI, which is seeing rapid advancements and applications.
The layoffs at Alibaba’s Yuanjing unit have affected operations in both Shanghai and Hangzhou, impacting several hundred employees involved in various metaverse initiatives.
The downsizing comes at a time when other tech giants, like Meta Platforms and Baidu, have also scaled back their metaverse-related endeavors to prioritize AI development. These changes underscore the shifting priorities within the tech sector as companies seek to invest in technologies with clearer paths to commercial viability and regulatory acceptance.
The company has yet to issue an official statement on the movements. The mass layoffs come just before Alibaba is set to announce its September Quarter 2024 results before the U.S. markets open on November 15.
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Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
