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Alibaba Group Reduces Workforce in Metaverse Division Amid Cost-Cutting Measures!

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Alibaba Group Reduces Workforce in Metaverse Division Amid Cost-Cutting Measures

Chinese tech conglomerate Alibaba Group has reportedly laid off employees from Yuanjing, its metaverse division, as part of ongoing efforts to streamline operations and improve cost efficiency, according to the South China Morning Post. The layoffs, which impacted teams in Shanghai and Hangzhou, come as part of a broader restructuring within Alibaba, which has been navigating challenges in a slowing global economy.

Background on Yuanjing

Established in 2021, Yuanjing was Alibaba’s response to growing interest in the virtual space, joining other major tech players such as Tencent, ByteDance, Kuaishou Technology, and Li Auto in pursuing metaverse-related initiatives and trademark registrations. The division was initially seen as a pivotal move into a burgeoning sector that promised new opportunities for engagement and revenue.

Financial Investment and Initial Goals

Yuanjing received significant financial backing, reportedly amounting to “billions of yuan,” to explore metaverse applications. The division aimed to develop tools and services that would facilitate user interaction within virtual environments, reflecting the company’s ambition to be at the forefront of this emerging technology.

Recent Layoffs and Restructuring

This recent reduction follows earlier workforce cuts by Alibaba. In February 2023, the company let go of more than 4,000 employees, and in 2022, around 19,000 employees were laid off as the group responded to economic challenges and refocused on operational efficiency. The company has recently faced setbacks in its financial performance, including missed revenue projections for the first quarter reported in August, with its core domestic e-commerce business feeling the strain from reduced consumer spending amid economic uncertainties in China.

Impact of Layoffs

The layoffs at Yuanjing have affected teams based in Shanghai and Hangzhou. Although specific numbers have not been disclosed, reports indicate that dozens of employees were impacted. The term “business optimization” is often used by Chinese companies to describe such workforce reductions, aiming to mitigate negative public perception.

Broader Industry Trends

Alibaba’s decision to reduce its metaverse workforce mirrors a broader trend among major technology companies that are scaling back investments in the highly publicized metaverse sector while reallocating resources toward artificial intelligence (AI).

Comparisons with Other Tech Giants

Similar actions have been observed across the industry; for instance, Meta Platforms, the parent company of Facebook, has also laid off employees within its Reality Labs division focused on metaverse projects. Additionally, Baidu experienced leadership changes within its metaverse division as it shifted focus toward AI advancements following the introduction of generative AI technologies like ChatGPT by OpenAI.

Future Directions for Yuanjing

Despite the layoffs, sources indicate that Alibaba’s metaverse division will continue to operate with a focus on developing metaverse applications and tools, as well as providing related services to customers. This suggests that while Alibaba is scaling back its ambitions in some areas, it remains committed to exploring potential opportunities within the metaverse framework.

Ongoing Projects and Innovations

Yuanjing had been working on a cloud-based operating system designed to support metaverse integration in video gaming and various industrial applications. Alibaba’s ventures related to the metaverse included leading a $60 million investment round for Nreal, a Chinese manufacturer of augmented-reality (AR) glasses. AR, along with virtual reality (VR) and mixed reality (MR), is widely seen as critical for accessing metaverse platforms.

Conclusion

As Alibaba navigates these changes within its metaverse division, it reflects a significant shift in strategy amidst broader economic challenges. The company’s decision indicates a recalibration of priorities as it seeks to enhance operational efficiency while exploring new avenues for growth.

Market participants will be closely monitoring how these developments unfold and what they mean for Alibaba’s future initiatives in both the metaverse and AI sectors. As consumer interest evolves and economic conditions fluctuate, Alibaba’s adaptability will be crucial in maintaining its competitive edge in the tech landscape.

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Zoho Pay Debuts as India’s New UPI Challenger, Taking on PhonePe, Paytm, and Google Pay

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Zoho Payment

Zoho Corporation has expanded its fintech portfolio with the launch of Zoho Pay, a UPI-based payments app built to challenge India’s top digital payment giants such as PhonePe, Paytm, and Google Pay. The new app supports peer-to-peer transfers, bill payments, QR-based transactions, and merchant settlements in a streamlined interface. Available as both a standalone app and an integrated feature inside Zoho’s privacy-driven messenger Arattai, Zoho Pay enables users to handle chats and payments in one platform, emphasizing data privacy and Made-in-India innovation.​

Through seamless integration with Arattai, Zoho Pay allows users to send or request payments, split expenses, and conduct UPI-based transactions directly in their chat windows. Users can link bank accounts, scan dynamic QR codes, and receive audio confirmations of payments, ensuring speed and security. This design mirrors the simplicity of India’s leading UPI apps but is powered by Zoho’s non-advertising, privacy-first model. The integration aligns with Zoho’s mission to build a self-reliant digital ecosystem, where messaging and money management coexist securely.​

In the competitive digital payments market, Zoho Pay differentiates itself through its tight business software integration with apps like Zoho Books, Zoho Payroll, and Zoho Commerce, offering small businesses unified access to payments, billing, and accounting. The company is also expanding its reach with POS devices for merchants featuring UPI QR, card payments, and instant reconciliation tools. With founder Sridhar Vembu’s vision of a ‘Chat + Pay’ ecosystem, Zoho Pay reflects a bold step toward redefining India’s fintech scene with a secure, ad-free, and locally developed alternative to global payment platforms.

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Meta Expands AI-Powered Reels Translation to Hindi and Portuguese, Enhancing Global Creator Reach

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Meta has expanded its AI-powered translation feature for Reels to include Hindi and Portuguese, joining English and Spanish in empowering creators to reach a broader global audience on Instagram and Facebook. Originally launched in August 2025 with support for English and Spanish, this update now allows creators to seamlessly translate and dub their short videos, breaking language barriers across some of the largest Reels markets worldwide. The AI technology mimics the creator’s voice tone and even offers lip-syncing to ensure the translated videos feel natural and engaging for viewers.​

This enhancement is especially significant for India, the largest market for Facebook and Instagram, where over 600 million people speak Hindi. Content creators who are not fluent in Hindi can now easily access this vast audience, increasing their reach and engagement across diverse linguistic groups. To maintain transparency, all translated Reels are clearly labeled with “Translated with Meta AI,” and viewers can choose to switch translations on or off based on their preference.​

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Dunzo’s Collapse: Reliance’s ₹1,645 Crore Loss Signals Challenges in India’s Hyperlocal Delivery Market

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Startup Stories

Reliance Industries has officially written off its $200 million investment in Dunzo, a once promising quick-commerce startup in India. Despite high-profile backing and the potential to disrupt the hyperlocal delivery sector, Dunzo faced insurmountable challenges including high operational costs, unsustainable cash burn, and stiff competition from larger players like Zepto and Blinkit. Reliance’s decision follows Dunzo’s operational suspension, leadership exits, and failed attempts at securing additional funding or acquisition partners, ultimately resulting in the company’s digital platforms going offline in early 2025.​

The downfall of Dunzo was accelerated by its inability to maintain a healthy balance between rapid expansion and revenue growth, with losses in FY23 reaching an alarming ₹1,800 crore. With monthly expenses crossing ₹100 crore and mounting pressure to scale, Dunzo resorted to layoffs and delayed payments before shutting down most services outside Bengaluru. Reliance’s significant stake, initially seen as a strategic advantage, ended up limiting the startup’s flexibility in making independent decisions during its final months.​

Reliance’s write-off sends a strong message to India’s startup ecosystem about the risks inherent in quick-commerce and hyperlocal delivery models. Investors are increasingly focused on sustainable growth, disciplined scaling, and profitability. For Reliance, lessons from Dunzo’s collapse are shaping future e-commerce strategies, driving greater emphasis on operational efficiency and prudent financial planning in an intensely competitive market.

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