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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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IIT Hyderabad Unveils Palyanka, Heavy-Lift Drone for Air Ambulance Use

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Hyderabad - Drone

The Technology Innovation Hub on Autonomous Navigation Foundation (TiHAN) at IIT Hyderabad has set a new standard in drone technology with the launch of Palyanka, a heavy payload drone designed as an autonomous air ambulance. Capable of carrying up to 200 kg, Palyanka is engineered to swiftly transport patients, medical equipment, or critical cargo across challenging terrains, bypassing traditional barriers like road congestion and remote inaccessibility. This advanced UAV operates autonomously, making it highly effective for rapid response in both urban and rural emergencies, and stands at the forefront of disaster relief operations in scenarios such as floods and fires.

Built for versatility, Palyanka doesn’t just function as an air ambulance. Its robust design enables use in rescue missions, cargo deliveries, and even as an air taxi for metropolitan connectivity. Inspired by the Sanskrit word for palanquin, the name “Palyanka” reflects the drone’s role as a safe and efficient carrier. All components, from conceptual design to IP, have been developed in-house at IIT Hyderabad, ensuring the drone meets stringent standards for durability and performance under extreme conditions.

With a development journey spanning over five years and led by Prof. P. Rajalakshmi, TiHAN’s team has transitioned from early drone prototypes to a full-scale, high-capacity solution like Palyanka. The team is now preparing pilot projects in hilly terrains and working on further enhancing the drone’s endurance with innovative heat-resistant materials. By pioneering such indigenous solutions, IIT Hyderabad’s TiHAN is transforming emergency medical services and logistics, marking a pivotal advancement in India’s urban mobility and public safety landscape.

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X’s Major Price Cut in India: Premium Plans Now More Accessible Than Ever

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StartupStories

X, the social media platform formerly known as Twitter, has announced a major reduction in its subscription prices across India, slashing fees by up to 48%. The Basic plan now starts at ₹170 per month, down 30% from its earlier price, while the Premium plan has dropped 34% to ₹427 per month on the web. The Premium+ plan has also become more affordable, now costing ₹2,570 per month—a 26% reduction. For mobile users, the discounts are even steeper, with Premium priced at ₹470 per month and Premium+ at ₹3,000 per month, reflecting the impact of app store commissions.

This marks the first comprehensive price adjustment across all three tiers—Basic, Premium, and Premium+—since the service launched as Twitter Blue in India in February 2023. The move comes shortly after Elon Musk’s AI venture, xAI, rolled out the new Grok 4 model and follows xAI’s acquisition of X earlier this year. The price cuts are seen as a strategic effort to boost adoption in India, one of the world’s largest internet markets, by making premium features more accessible to a wider audience.

Each subscription tier offers a range of features: Basic users can edit and write longer posts, enjoy background video playback, and download videos. Premium subscribers get additional perks like a blue checkmark, creator tools, analytics, and fewer ads, while Premium+ members benefit from an ad-free experience, article publishing, and exclusive access to advanced AI features. These changes are expected to make X’s premium services more appealing to Indian users looking for enhanced social media experiences.

 

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Leadership Shakeup at X: Linda Yaccarino Resigns After Two Years at the Helm

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Linda - Startup Stories

Linda Yaccarino, the CEO of X (formerly Twitter), announced her resignation on July 9, 2025, bringing her two-year leadership of Elon Musk’s social media platform to a close. Yaccarino, who previously led NBCUniversal’s advertising division, was appointed in 2023 to help stabilize X’s advertising business and guide the company through its ambitious transformation into an “everything app.” In her farewell message, she expressed gratitude to Musk for entrusting her with the mission of revitalizing the company, protecting free speech, and prioritizing user safety, though she did not specify a reason for her departure.


Her exit comes at a turbulent moment for X, following the recent controversy involving Grok, the AI chatbot developed by Musk’s xAI, which posted antisemitic content referencing Adolf Hitler. This incident intensified scrutiny of X’s content moderation policies and added to the challenges Yaccarino faced, including restoring advertiser trust after a period of strained relations with major brands. Some analysts have suggested that differences in management style between Yaccarino and Musk, as well as the evolving structure of X after its integration with xAI, may have contributed to her decision to step down.

Elon Musk publicly thanked Yaccarino for her contributions, while her departure leaves a leadership gap as X navigates ongoing business, regulatory, and reputational challenges. The company’s next steps will be closely watched as it seeks to maintain its influence in the social media landscape and fulfill Musk’s vision of a multifaceted digital platform.

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