Meta Plans Layoffs in Reality Labs Division
Meta, the parent company of Facebook and Instagram, is reportedly set to cut staff in its Reality Labs division, which focuses on the development of the metaverse. This marks the second round of layoffs for Meta since 2022. The Menlo Park-based tech company has already informed employees about the upcoming job cuts. The restructuring will primarily impact the Facebook Agile Silicon Team, a unit dedicated to creating custom chips for Meta’s augmented reality (AR) and virtual reality (VR) devices. Although the exact number of employees affected is unknown, the unit currently employs around 600 people.
Shift Towards Sleeker AR Glasses
Meta’s decision to downsize in Reality Labs is part of its strategy to prioritize the development of sleeker AR glasses that resemble regular eyewear. According to sources, the company aims to release the first version of these glasses by 2024. The move comes after Meta’s previous round of layoffs in November 2022, where approximately 11,000 jobs were cut due to financial concerns and high inflation. Since its launch in Q2 2020, Reality Labs has incurred operating costs totaling almost $34 billion.
Commitment to the Metaverse
Despite the layoffs, Meta remains committed to investing in the metaverse. The company plans to double down on its efforts beyond 2023 with a focus on growing overall company operating income in the long run.
Hot Take: Meta Streamlines Reality Labs Division Amid Metaverse Ambitions
As Meta continues to shape its vision for the metaverse, it is streamlining its Reality Labs division through a round of layoffs. By refocusing resources and downsizing certain units within Reality Labs, such as the Facebook Agile Silicon Team, Meta aims to prioritize the development of sleek AR glasses. These glasses, resembling regular eyewear, are expected to be released by 2024. Despite concerns over high operating costs and previous layoffs, Meta remains committed to its metaverse ambitions. The company plans to strategically invest in Reality Labs beyond 2023, aiming for long-term growth in overall company operating income. This move reflects Meta’s determination to lead the way in the evolving world of augmented and virtual reality.
By
By
By
By
By