Alibaba is scaling down its metaverse business, and its metaverse division "Yuanjing" has laid off dozens of employees. This round of layoffs is part of a company restructuring aimed at optimizing organizational efficiency. The Yuanjing division will continue to operate, focusing on the development of metaverse applications and tools, as well as providing metaverse-based services to clients.

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<p>According to a report by the South China Morning Post on November 4, Alibaba Group is scaling back its metaverse operations. Sources revealed that Alibaba's metaverse division, "Yuanjing," has laid off dozens of employees across its offices in Shanghai and Hangzhou. This layoff is part of a corporate restructuring aimed at optimizing organizational efficiency. Yuanjing previously received investments totaling billions of yuan and had a workforce of hundreds. Despite the layoffs, the Yuanjing division will continue to operate, focusing on the development of metaverse applications and tools, as well as providing metaverse-based services to clients.</p>
<p>In 2021, several Chinese tech companies, including Alibaba, rushed to register trademarks related to the metaverse, exploring opportunities in the virtual world. However, as industry enthusiasm wanes, global tech companies, including Meta and Baidu, have also adjusted their metaverse business strategies. Alibaba's previous investments in the metaverse included leading a $60 million financing round for AR glasses manufacturer Nreal and developing a cloud-based metaverse operating system for gaming and industrial applications. While some local governments are still promoting metaverse-related projects, national media have repeatedly warned about the risks of excessive market speculation.</p>
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Alibaba reduces the scale of its metaverse business, laying off dozens in the Yuanjing department.

Alibaba reduces the scale of its metaverse business, laying off dozens in the Yuanjing department.