Alibaba Cuts Jobs in Metaverse Unit Amid AI Shift

In Brief:

Alibaba has reduced its metaverse unit, cutting dozens of jobs as the company shifts its focus towards artificial intelligence development.

The downsizing reflects a broader industry trend, with other major tech companies like Tencent, Baidu, and Meta also reallocating resources from metaverse to AI.

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Alibaba Cuts Jobs in Metaverse Unit Amid AI Shift

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Chinese e-commerce giant Alibaba is reportedly scaling back its metaverse operations, reducing the workforce in its Yuanjing metaverse division. This move aligns with a broader industry trend where tech companies are reallocating resources from metaverse development to artificial intelligence.

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The decision to cut dozens of jobs comes as Alibaba aims to improve efficiency and adapt to the evolving tech landscape. Despite the downsizing, the Yuanjing unit will continue to provide metaverse applications, tooling, and services, maintaining a presence in Shanghai and Hangzhou.

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Industry-Wide Shift from Metaverse to AI

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Alibaba's restructuring mirrors actions taken by other tech giants, such as Tencent, ByteDance, and Baidu, who initially invested heavily in the metaverse but are now pivoting towards AI. The shift is driven by the growing demand for AI technologies, which have become the latest focus in the tech industry.

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Earlier this year, other major companies like Meta, Microsoft, and Disney also downsized their metaverse divisions, redirecting efforts towards AI development. As the hype around virtual worlds diminishes, the tech industry is increasingly prioritizing AI to stay competitive.

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