Meta Platforms has commenced a significant workforce reduction, cutting over 1,000 jobs within its Reality Labs division. This move is part of a strategic realignment, shifting resources away from virtual reality and metaverse projects towards the development of AI-powered wearables and phone functionalities. According to an internal memo from Chief Technology Officer Andrew Bosworth, the layoffs will affect approximately 10 per cent of the Reality Labs workforce, which comprises around 15,000 employees. Meta Platforms is a technology company that develops and operates social media platforms. It also invests in augmented and virtual reality technologies.
The company is re-evaluating its metaverse strategy, with a renewed emphasis on mobile applications, Bosworth’s memo indicated. Furthermore, Meta intends to curtail its investments in virtual reality to foster a more financially viable business model. A company spokesperson confirmed the shift, stating that the reallocation of resources from metaverse projects towards wearables is already underway. The spokesperson added that the resulting savings will be reinvested to bolster the growth of the wearables division throughout the current year.
Reality Labs encompasses Meta’s hardware initiatives and futuristic product development, including VR headsets, AI glasses, and virtual world platforms. However, this division has incurred losses exceeding $US70 billion since the beginning of 2021, as many of its investments have yet to yield substantial revenue. The job cuts reflect Meta’s efforts to streamline operations and redirect investments towards more promising areas within the technology sector.
