ByteDance Pico, Conducts Restructuring Due To Weakening VR Headset Demand

Pico's VR headset has decreased demand. (photo: twitter @SkarredGhost ·)

JAKARTA - ByteDance, the parent company of TikTok, has announced that their virtual reality unit (VR), Pico, will face significant cuts in employment and restructuring. This decision was taken because global demand for VR headsets weakened.

At the internal meeting, Pico CEO Zhou Hongwei revealed that the VR industry is still in its early stages, and industrial and market developments are not as fast as expected. As part of the restructuring, the Pico hardware team will remain maintained, while most software teams will be reunited to ByteDance's product development team.

Although the meeting did not specify the amount of work to be cut, it is estimated that "one hundreds" of staff around the world will be affected. Pico announced that this restructuring would allow them to focus more on developing hardware and core technology.

Pico's acquisition by ByteDance in 2021 was worth more than $1 billion and was seen as ByteDance's attempt to compete with Meta Platforms' VR headset line. However, VR headset demand has decreased, with the delivery of an additional reality headset (AR) and VR down in four consecutive quarters.

This situation creates challenges for tech companies trying to keep up with the growing trends in the VR industry. Although Pico has achieved success inside and outside China, ByteDance appears to have reduced efforts to develop the Pico brand in recent months.

This cut in jobs and restructuring marks a step back for ByteDance after Pico's acquisition and reflects changes in the company's view of VR. Although there are reports indicating a slow plan to reduce Pico's role, ByteDance still expresses its commitment to the VR industry in the long term.