Microsoft, a major player in technology, appears to have abandoned the industry-focused metaverse project it started approximately four months ago. Additionally, the 100-person team that worked on the program is believed to have been completely dismissed. The necessity to give priority to short-term projects that produce money more quickly may have contributed to the demise of the industry-focused metaverse unit. This information was believed to be released on the 9th of February by a person of direct knowledge.
Is Microsoft’s Playing for the Short-Term, or the Long-Term?
The article said that a source with firsthand knowledge of the situation claimed that Microsoft‘s metaverse plan would not proceed because short-term initiatives were prioritized since they would provide considerable income more quickly. The sources note that the personnel reductions, internally known as “Project Bonsai,” are also a part of Microsoft‘s larger plan to fire 10,000 workers, which was unveiled last month.
Metaverse is a platform that is a continuous virtual environment in which the users can communicate with one another using virtual avatars. These virtual worlds may be utilized for business, play, and even social relationships. But it seems like this was not a profitable incentive for Microsoft in the short-term.
Are All the Major Companies Like Microsoft Contributing to these Layoffs?
The Microsoft layoffs are linked to a variety of decisions made by other major technology, social media, and cryptocurrency organizations in 2022. Workforce reductions in the cryptocurrency industry have mostly affected exchanges.
Kraken, the second-largest U.S. exchange with headquarters in San Francisco, stated in November that 1,100 employees will be let go, resulting in a 30% reduction in its staff. The 18% staff cut that Coinbase started in June would result in over 1,000 layoffs.
However, the largest cryptocurrency exchange in the market, Binance, has not seen a significant wave of layoffs, and it just announced plans to raise its employment by up to 30% in 2023.
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