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Meta, Microsoft and Coinbase: the revolution of layoff in tech companies

Budi posrednik između stvarnog i virtualnog – podijeli članak:

Are the layoffs paying off or not? The trending layoffs in tech companies was a piece of major world news in the year 2022. It affected local and international, small-scale and large-scale enterprises, as well as the society from the family unit. Meta, Microsoft, and Coinbase streamlined the main reason for partaking in this provocative action from the many available reasons influencing the tech world. The impact of this decision can be felt on the economic status of many homes across the globe, both directly and indirectly. The unending faith of Mark Zuckerberg among many others in creating the new future through virtual reality has been the major frontliner of these layoffs in many tech companies.

The bold decision Meta made to lay off about 11,000 of their active workforce became a strong landmark resulting from the massive investments the metaverse has received in resources within the past year. In business, it is quite unsurprising for layoffs to occur after a major economic downturn of a business structure. However, these numbers were quite incredible for a single organization no matter how large of a scale it may be. At this point, it will be quite fair to ask if globalization is indeed helpful. Globalization has its perks, but just like this practical situation, it has a tremendous negative feedback on the globe. The effect of this decision made by tech companies has caused a major imbalance in the world of work.

The advent of VR devices has begun taking the waves in the tech industry. Not only is virtual reality taking the reins beyond the frame of augmented reality, but virtual reality is creepily replacing the need for active physical collaboration among humans. This is the case of the partnership signed for existence between Meta and Microsoft in October 2022. This partnership has further defined the need to incorporate the metaverse into the world of work. According to the President of Microsoft collaboration apps and platforms, Jeff Teper, this partnership aims to enable people to connect and collaborate “as though they are together in person”. The question here is, will this build or decline global human relationships?

You should know that the existence of virtual reality was not just discovered. Its full force in the marketplace as a frontliner, through the world of work, is the cause of the global disturbance. The partial influence of virtual reality extended into creating digital money in 2008; the likes of cryptocurrency. This was the structure on which Coinbase was developed in May 2012; a virtual trading platform for digital currencies anywhere in the world. As the world transcended more into the digital space, there was massive growth for Coinbase. According to Brian Armstrong, the co-founder of Coinbase, the layoff was necessary to meet up with the growing demand for effectiveness within the organization. The ratio of the work available to the number of the active workforce became ineffective due to the economic downturn across the globe. You can read more about our stock analysis on Coinbase.

Can we then say that the push factor(s) for these layoffs in tech companies was a result of the global economic downturn or the storming take-over of virtual reality or a combination of both? The prediction for the coming years says the world of work will further incorporate the work-at-home structure. How true will that be? Not only is the world of work influenced, but the major influence of virtual reality has been seen in the gaming industry for decades. The invention of these VR devices has upgraded the world gaming experience; the likes of the Meta Quest 2 games, formerly known as Oculus Quest 2 games. Upgrade of these devices is further expected from Meta in the coming years as tech gets more refined.

Microsoft’s development of Hololens 2 from its Hololens predecessor was not widely short of expectation due to its major improvement in its business friendliness. Compared to other VR devices, the Hololens is an augmented reality that takes into consideration the real world with the virtual reality created. It is much more understandable that every invention made by Microsoft is tilted towards work development, hence, the need for the upgrade of its business friendliness. Jeff Teper explained the need for a virtual shift in work patterns as an adjustment to the post-pandemic era. This approves the collaboration of the Microsoft Mesh for teams to Meta Quest devices. The inclusion of Microsoft 365 in Meta Quest devices is expected to increase the virtual work productivity of Microsoft apps; the likes of Excel, PowerPoint, Outlook, and so on. This partnership is targeted to improve the responsiveness of the metaverse to global growth.

Interestingly, the Metaverse VR currency is not supported by Coinbase. However, Coinbase has high expectations for the new future the Metaverse will create. According to Brian Armstrong, the Metaverse ecosystem will be further built through the platform to enable crypto to grow the right way. The strategy is to create features that will enable users to sign into every app in the Metaverse by purchasing a unique ID with Coinbase that can be used anywhere in the world and across all VR devices. The vision of interconnected virtual worlds is to launch into the Metaverse in a way that is “simple, trusted, and decentralized.” This will develop the Metaverse into its full potential as the new future, with open access to everyone.

The image painted by the functionality of the Metaverse and Virtual reality to create a new future in the world of work and global experience wouldn’t be termed overrated. These expectations are based on factual calculations, with a corresponding decision of layoffs in tech companies all over the world. The question here is no longer about the decision being fair or not, but how should the affected workforce manage the situation. The diversion into virtual reality created a need for a corresponding balance in the virtual workspace. It’s fair to say these changes are expected, however, proper plans were expected to be made to reduce the immediate short-term effect of this decision from tech companies around the globe. This revolution can be further managed as the affected take active steps to launch into the digital work environment as the new future.