Com2Verse, a metaverse platform under Com2uS Corp., has embarked on a massive downsizing to reduce labor costs just one month after the release of its new metaverse services.

As reported by multiple sources from the gaming industry on Thursday, Com2Verse announced its reorganization plans on its in-house website, including a voluntary redundancy program, which will be open to all its 100 employees, regardless of their years of service.

The company said the package on voluntary redundancy includes three months of pay in addition to the severance payouts required by law. However, key staff members in software engineering and services will be able to move to other teams in the parent company.

“The reorganization was a decision made to improve companywide efficiency,” according to an unnamed Com2Verse source.

Founded in April 2022, Com2Verse is committed to developing metaverse solutions that can be used for various purposes from day-to-day business to private virtual gatherings.

The metaverse developer unveiled its first virtual space for individual users, SPAXE, and a dedicated corporate event space known as the Convention Center on August 1 and 6 respectively. Before the launch, Com2verse drew considerable attention by establishing strategic business partnerships with companies spanning diverse sectors, including finance, education, and information technology (IT).

But the company has faced challenges recently over concerns that its metaverse content has limited potential for sustainable growth amid the resurgence of in-person gatherings after social-distancing restrictions due to COVID-19 were lifted.

The company logged 8.3 billion won ($6.1 million) in operating loss for the first half of 2023.

“We will continue to focus on metaverse services, especially for business-to-business virtual spaces,” the company said.

By Ko Min-suh and Han Yubin

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