ByteDance’s Oculus challenger Pico lays off hundreds, halts aggressive expansion
techcrunch.comWhen Pico launched its Oculus Quest challenger in China last year, it did so with great optimism. Light (295 grams) and affordable ($420), the virtual reality headset released by the ByteDance-owned manufacturer was expected to drive adoption in a market inaccessible to Meta.
The odds were against Pico. Its sales have been sluggish, and this week, Pico, which was acquired by the TikTok parent two years ago, initiated a fresh round of layoffs.
This week, Pico held an internal meeting announcing a major reorganization. A person familiar with the matter told TechCrunch that “a few hundred” employees were let go, leaving Pico with “under 2,000” people.
Even after the layoff, Pico, as it stands today, has a significantly bigger headcount than the team of 200-300 when it was acquired. The shakeup suggests that Pico is regrouping to slash costs and pursue more sustainable growth after a period of aggressive expansion.
In a statement, a Pico spokesperson said that the unit was restructuring to focus more on “hardware and core technologies.”
“We frequently assess our business needs and make adjustments to strengthen our organization and better align our teams with company goals,” the spokesperson said.
Frequent assessments are indeed needed at a time when China’s post-COVID economic recovery misses expectations. China’s VR shipments shrank by 56% year-over-year in the first half of 2023, according to market research firm Counterpoint.
The slump “marked the end of the Chinese VR market’s two-year growth streak, spanning 2020-2022, and reverting to a state of stagnation,” the report said.
The decline was due to several factors. For one, Chinese consumers are spending less amid a weakening economy. To weather the tepid economic recovery,
Read more on techcrunch.com
