The cuts are said to disproportionately impact those who currently work in the metaverse unit, particularly in virtual reality.
A report published by the New York Times suggests that tech giant Meta is preparing to cut 10pc of employees working for Meta’s Reality Labs, of which there are roughly 15,000 people. Three individuals, with knowledge of Meta’s operation, who chose to remain anonymous, shared the information on Monday (12 January).
Reality Labs is a research and development unit that focuses primarily on augmented reality (AR), virtual reality (VR) and the creation of the metaverse. The report speculates that the cuts are most likely to affect employees working in the metaverse space, on VR headsets and VR-based social media.
In early December of last year reports emerged that the metaverse division may have overextended itself, as sources speaking to Bloomberg explained that the new year would bring significant divestment, with as many as 30pc of the group to be cut.
The most up to date reports of potential cuts come at a time in which Meta has stated plans to shift its focus to further AI innovation, with sources noting that the organisation intends to reallocate funds from VR products, redirecting them towards the wearables division, which oversees the development of Meta’s smart glasses and wristbands.
In a memo shared with the New York Times, Andrew Bosworth, who is Meta’s chief technology officer and who oversees Reality Labs, has called a meeting for Wednesday and staff are urged to attend in person. The scheduled gathering has been described as the “most important of the year”.
The metaverse has been a core focus for Meta’s owner and CEO Mark Zuckerberg, with Reuters reporting that the venture has swallowed more than $60bn since 2020. In 2014 he bought VR start-up Oculus, forming the base for Meta’s own hardware endeavours, however, so far the demand for Meta’s headsets has remained underwhelming.
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