ByteDance's VR Arm Pico to Undergo Overhaul Amid Declining Global Demand

ByteDance, the parent company of TikTok, is set to undertake a major overhaul of its virtual reality (VR) arm, Pico, as global demand for VR headsets weakens, according to sources familiar with the matter.

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The restructuring will involve job cuts and a realignment of Pico's software team back into ByteDance's own product development team.

During an internal meeting, Pico's CEO, Zhou Hongwei, acknowledged that the VR industry is still in its early stages and that the company's growth estimations were overly optimistic. As a result, Pico will be laying off staff from its sales, videos and platform operation teams. While the exact number of job cuts was not specified, it is expected to affect hundreds of employees globally.

ByteDance's acquisition of Pico in 2021 was seen as a strategic move to compete with Meta Platform's popular Quest line of VR headsets. However, the demand for VR has been lackluster this year, with shipments of VR and augmented reality (AR) headsets declining for four consecutive quarters. This decline in demand has prompted ByteDance to scale back its efforts to develop Pico as a brand, leading to the departure of several senior managers.

In response to the reports, ByteDance stated that it remains committed to the VR industry in the long term. However, the company did not comment on the changes in Pico's strategic position or the personnel changes.

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• ByteDance's VR arm, Pico, will undergo a major overhaul due to declining global demand for VR headsets.

• The restructuring will involve job cuts and a realignment of Pico's software team back into ByteDance's product development team.

• Pico's CEO acknowledged that the VR industry is still in its early stages and that growth estimations were overly optimistic.

Source: REUTERS