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Chinese e-commerce giant Alibaba is reportedly scaling back its Metaverse operations, joining other tech giants that have slashed resources in the advertising department.
Dozens of employees at Alibaba's Metaverse division have been laid off as the company restructures and aims to improve productivity, according to Alibaba-owned South China Morning Post.The company's Metaverse Yuanjing unit operates in Shanghai and Hangzhou and was launched by Alibaba in 2021 amid the buzz of virtual world platforms and related technologies.
In May 2023, the head of Metaverse operations at Baidu left the company after the Chinese search giant focused on developing artificial intelligence.
In October 2023, Facebook parent Meta laid off employees from its Reality Labs unit, which develops augmented reality and virtual reality technologies for Metaverse, according to a Reuters report at the time

The Metaverse is still growing, but the resource cuts indicate that companies need to be cautious in their decision-making.