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Microsoft lays off all 100 people from its metaverse team

by Patricia

While Microsoft announced the layoff of 10,000 people last month, we learn that its metaverse team is part of the package.

Microsoft fires its Industrial Metaverse Core team

Just four months ago, last October, Microsoft created a team specifically dedicated to the development of an industrial metaverse: the Bonsai project, named after a startup acquired in 2018. While the famous company announced last month that 10,000 people would be made redundant by 31 March, the media outlet The Information reported that the team assigned to this metaverse project was affected.

The Industrial Metaverse Core had 100 staff, and the aim was to develop software solutions based on artificial intelligence (AI) to improve the efficiency of various jobs in areas such as logistics, manufacturing and energy, for example.

Nevertheless, this choice seems to be more of a short-term financial strategy than a real desire to abandon this sector, if we are to believe the words reported to our colleagues at CoinDesk:

Microsoft remains committed to the industrial metaverse. We are focused on the areas of the industrial metaverse that matter most to our customers and they will see no change in the way they are supported. We look forward to sharing additional information in the future. “

A tough start for a sector still finding its feet

While the concept of virtual worlds is not new in itself, interest in the metaverse had a huge “boom” in late 2021 when Facebook changed to Meta. Since then, all the big names in technology have been making announcements.

But behind the marketing appeal of the term, much remains to be built and the break-even point is far from being reached. Meta’s metaverse division recorded a loss of 13.7 billion dollars in 2022.

As for Microsoft in general, the group’s share price seems to be showing some resilience. Indeed, although it is trading at $263.10 a share, nearly 25% lower than its last historical high (ATH), its weekly price data shows that a higher low point than the previous one was formed in January:

Microsoft share price on NASDAQ

Microsoft share price on NASDAQ

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