Meta is preparing to reduce its workforce in the Reality Labs division by approximately 10%, according to a report from the New York Times. This move could impact around 1,500 employees, as the division currently employs about 15,000 people. The cuts are expected to be announced soon, possibly as early as Tuesday.
Focus on Metaverse Unit
The layoffs will disproportionately affect employees working on the metaverse project. This includes teams developing virtual reality headsets and virtual social networks. The metaverse has been a major initiative led by CEO Mark Zuckerberg, who invested heavily in the venture. Since 2020, the business has reportedly burned through more than $60 billion.
Reality Labs Products
Apart from the metaverse, Reality Labs is responsible for producing several key products. These include Meta's Quest mixed-reality headsets, smart glasses made in collaboration with EssilorLuxottica's Ray-Ban, and augmented-reality glasses. The company has faced challenges in selling its vision of an immersive digital universe. However, it has seen some early success with its smart glasses, as competitors like Google and Apple have struggled to gain traction in the market with their initial attempts.
Internal Meeting Called
Meta Chief Technology Officer Andrew Bosworth, who oversees Reality Labs, has called a meeting for Wednesday. He has urged staff to attend in person, according to a memo cited by the NYT. The company has not yet responded to requests for comment on the reported layoffs.
Broader Context
This report comes at a time when Meta is striving to remain relevant in the competitive artificial intelligence race in Silicon Valley. The company's Llama 4 model recently received a poor reception, adding pressure to its strategic shifts. The job cuts in Reality Labs signal a potential realignment of resources as Meta navigates these challenges.
