Meta Shifts Resources From Metaverse Toward AI, Wearables
The realignment has reportedly triggered job cuts affecting about 10% of Reality Labs staff.
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Meta Platforms Inc has begun cutting more than 1,000 jobs in its Reality Labs division as the company pares back its costly metaverse push and redirects resources toward artificial intelligence and wearable devices, Bloomberg News reported, citing an internal memo it reviewed.
Affected employees have started receiving layoff notices, with the cuts expected to affect about 10% of Reality Labs staff, Bloomberg said.
Chief Technology Officer Andrew Bosworth was scheduled to address staff this week about the changes.
The layoffs follow an earlier report in the The New York Times that said Meta was planning to cut around 10% of its Reality Labs employees as part of a strategic realignment.
Reality Labs, the division behind Quest virtual-reality headsets and immersive software, has been a sustained drag on Meta’s finances. While Meta does not disclose cumulative losses for the unit, Reality Labs has reported operating losses of more than $70 billion since late 2020, according to the company’s earnings disclosures.
Several VR game studios and development teams are being shut down or scaled back as part of the restructuring, Bloomberg reported, including studios responsible for virtual-reality games and development tools.
The move points to Meta’s shift to technologies with stronger near-term commercial prospects. The company has been ramping up investments in AI and wearables, including AI-enabled smart glasses developed in partnership with EssilorLuxottica under the Ray-Ban brand, which have seen early demand that Meta executives say justifies increased production.
The restructuring is intended to rebalance investment toward wearables, with savings redirected to support that business this year, Meta said in comments cited by Bloomberg News.
Despite the cuts, Meta is not exiting virtual reality altogether. The company continues to support Horizon Worlds and is encouraging developers to build simpler, mobile-friendly experiences aimed at broader adoption, Bloomberg reported.
