Following a $ 20 million round of financing, augmented reality headset maker Meta Company was forced to retire (or temporarily release) 65 percent of its workforce for 30 days.
On Monday Meta CEO Meron Gribetz said Bloomberg that the round of financing was put on hold by leading investors from China, which also jeopardized the remaining pledged funds of other investors.
"The Chinese government has made an official request to our lead investor to re-evaluate the business based on recent Trump government action," Gribetz told Bloomberg . "This was a big shock for us."
A company spokesman confirmed that the retreats began on September 3. Affected employees are completely on leave for 30 days.
Earlier funding from people like Tencent Holdings Ltd and Lenovo Group Ltd., China, is critical to Meta's business. Therefore, Meta plans to establish a subsidiary in China to facilitate Chinese investment and avoid tariffs, as many of Meta's suppliers are also based in China.
"The Chinese government understands that augmented reality and virtual reality are the future of the future," said Gribetz. "Any company that needs to raise significant amounts of capital and produce goods cost-effectively and conquer markets that are hungry for early adoption must be present in China."
During Meta's trade war between the US and China, the timing of the news of vacation falls strangely short of the long-awaited release of the Magic Leap One about a month ago. Next Reality asked Meta exactly when the holidays started, but at the time of writing we have not received a response yet.
The news also follows the promotional offers sent to e-mail communication subscribers in July, with the price of the Meta 2 headset temporarily capped at $ 949 for US and Canada customers and $ 1,100 for Europe with a promo Lowering Code for a Limited Time (The Normal Price Is $ 1,495)
There is no good news for Meta or for the augmented reality headset industry as a whole, but it's not a damned development. Following layoffs and lost sales this year, the display manufacturer Avant has jumped from its own financial gap with a new round of financing and a focus on next-generation consumer products.