Layoffs and New Investments at Meta Reality Labs

Layoffs Coming from Meta Reality Labs

Meta Platforms has announced plans to part ways with approximately 10% or more of the employees in its Reality Labs division, which encompasses its metaverse unit. This decision is seen as a step towards focusing more on the company's next-generation artificial intelligence initiatives.

Changes in the Reality Labs Division

Reality Labs currently hosts around 15,000 employees and is responsible for virtual reality headsets and VR-based social networks. According to the New York Times, the layoffs are expected to be announced to the public by Tuesday at the latest. During this process, the goal is to increase investments in virtual reality and wearable technology.

Resource Reallocation

The company plans to reallocate its resources to increase its budget for devices such as smart glasses and wristbands. Meta's Chief Technology Officer Andrew Bosworth has called for a meeting on Wednesday, where he is expected to share important information about the company's future with the employees. The meeting has been emphasized as the year's "most significant" gathering, although details have not yet been disclosed.

Increasing Competitive Environment

These decisions by Meta are shaped by the increasing competitive environment with OpenAI, Alphabet's Google, and Microsoft. Following layoffs in April, a similar situation had affected the Oculus Studios unit within the Reality Labs division. Additionally, in October, around 600 employees were also let go in the field of artificial intelligence.

These steps are part of the strategic changes Meta has initiated following its $14.3 billion investment in Scale AI.