Meta, the parent company of Facebook, has started a major restructuring of its Reality Labs division. The company is cutting more than 1,000 jobs in this move. Employees received notifications about the layoffs starting Tuesday morning, US time.
Internal Memo Details the Changes
Chief Technology Officer Andrew Bosworth sent an internal memo to staff. In the memo, he described the job cuts as a necessary step. Bosworth said this action will help create a more sustainable business model for Reality Labs.
The restructuring signals a strategic shift for Meta. The company is moving away from its heavy focus on the metaverse. Instead, Meta will now prioritize opportunities in Artificial Intelligence wearables and mobile integration.
Focus Shifts to Mobile and Wearables
Bosworth explained the reasoning behind this change in his memo. He wrote that mobile platforms have the largest potential user base today. Mobile also shows the fastest growth rate. Because of this, Meta is shifting teams and resources almost exclusively to mobile. The goal is to accelerate adoption in this area.
Reality Labs has been the center of Meta's virtual and augmented reality ambitions. However, the division has lost billions of dollars since it began. The unit currently employs about 15,000 workers. While Meta has not officially confirmed the exact number, reports suggest the cuts will affect roughly 10% of the division's workforce.
Company Confirms Strategic Pivot
A Meta spokesperson confirmed the strategy shift to Bloomberg. The spokesperson noted that the company had previously signaled this change. Meta is moving from purely virtual environments toward wearable technology like the Ray-Ban Meta Glasses.
The spokesperson stated clearly: "We said last month that we were shifting some of our investment from metaverse toward wearables. This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year."
Production Plans for Smart Glasses
Meanwhile, a separate report reveals interesting production plans. Meta and its partner EssilorLuxottica are considering doubling their smart glasses production capacity. They may increase it to 20 million units annually by the end of this year.
Bloomberg News reported that strong demand is driving this potential increase. The capacity might even exceed 30 million units if market conditions remain favorable.
This restructuring represents a significant moment for Meta. The company is clearly adjusting its priorities based on market realities. While the metaverse captured much attention in recent years, practical applications in AI and wearables now take center stage.
