ByteDance Restructures Pico Amid Falling VR Headset Demand, Plans Massive Job Cuts

Pico, the virtual reality arm of TikTok owner ByteDance, to pivot towards hardware development and disband much of its software team as sales falter amid global slowdown in VR headset demand.

• Pico, ByteDance's VR branch, has announced plans to significantly shift its focus from software to hardware development, decided after overestimated growth predictions for the VR market.
• This strategic move is expected to result in 'hundreds' of job cuts, mostly from the software development team. These cuts follow a previous layoff wave earlier in the year, which affected several hundred employees.
• Despite the restructuring and job cuts, Pico continues to maintain market presence. In China, it holds the title of leading VR producer by total shipments and, globally, it ranks second only to Meta.
• The decision to pull back from software development comes in response to a notable decline in VR headset demand, falling 44.6% year-on-year during the second quarter according to IDC.
• While the specific impact on Pico's future remains unclear, several senior managers have left the company over the past year, showing possible internal disruption.

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