Meta, the parent company of Facebook, intends to implement layoffs within its Reality Labs division’s silicon unit, which is primarily dedicated to metaverse development. According to insider sources, the official announcement regarding these job cuts is expected later today. The company conveyed this decision to its employees via a post on the internal discussion forum on Tuesday. Sources further indicate that affected employees will receive notifications about their employment status within the company later today.
Metaverse division could see job cuts in this round of layoffs
The metaverse division is currently facing the possibility of downsizing in the latest round of workforce reductions. These job cuts have raised concerns about Chief Executive Mark Zuckerberg’s ambitious plans to develop augmented and virtual reality products, collectively referred to as the “metaverse.” This includes the development of augmented reality (AR) glasses, which Zuckerberg believes will revolutionize our interaction with digital devices. If the layoffs are extensive, they could potentially hamper the progress of this ambitious project.
The unit most likely to be affected is the FAST division, which currently employs around 600 staff and is responsible for designing custom chips for Meta’s AR/VR devices. The restructuring of the FAST unit was announced after the appointment of a new executive to lead the division in the spring. Meta faced challenges in producing competitive chips in-house, leading them to seek assistance from Qualcomm.
Additionally, Meta has recently unveiled the Quest 3 headset, and there are reports that the company is also working on technologically advanced AR glasses that resemble regular eyewear, along with smartwatches. The initial version of this product is expected to be completed next year, although it may not be widely available to consumers initially.
Meta has already trimmed approximately 21,000 jobs since November to reassure investors amidst declining revenue growth, rising inflation, and significant financial losses in the Reality Labs division. Zuckerberg has indicated that most of the layoffs will take place in the spring, with some continuing through the end of the year in limited cases.
