Meta is reportedly making preparations to reduce its workforce in the Reality Labs division, a sector of the technology giant that is dedicated to the metaverse. This will mark the company’s second round of layoffs since 2022.
According to sources familiar with the matter, the Menlo Park-based company has already informed its employees about the upcoming layoffs. The cuts are expected to impact the Facebook Agile Silicon Team, a group that specializes in developing custom chips for Meta’s augmented reality (AR) and virtual reality (VR) products.
While the exact number of employees facing termination is unknown, reports suggest that the unit currently employs around 600 people. In a bid to streamline its operations, Meta is focusing on creating sleeker AR glasses that resemble regular eyewear, rather than bulky devices.
Sources have indicated that Meta aims to unveil the first version of these glasses by 2024, although an official release date has not been confirmed. This move comes as part of Meta’s ongoing efforts to reduce costs, following the company’s previous round of layoffs in November 2022, which saw approximately 11,000 job cuts.
Since its launch in Q2 of 2020, Reality Labs has incurred operating costs amounting to nearly $34 billion. Despite these challenges, Meta remains committed to doubling down on its investment in the metaverse. The company has outlined plans to continue investing in Reality Labs beyond 2023, with the goal of increasing overall company operating income in the long term.
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