Major Restructuring Hits Meta's Reality Labs
According to the Wall Street Journal, citing insiders, Meta has initiated a significant workforce reduction within its Reality Labs division, cutting approximately 10% of its staff—around 1,500 employees. This unit, responsible for developing virtual and augmented reality technologies, has been central to Meta’s ambitious metaverse vision.
Why the Strategic Pullback?
The downsizing reflects a broader recalibration of priorities. While Meta remains committed to the long-term promise of immersive technologies, sustained financial losses have prompted a shift toward fiscal discipline. Reality Labs has consistently reported massive quarterly deficits, leading executives to redirect resources toward higher-impact areas like artificial intelligence and core app development.
- Reality Labs lost over $16 billion in 2023 alone
- Investment focus is shifting to AI and platform efficiency
- Several hardware initiatives have been delayed or shelved
Despite the cuts, Meta emphasizes it’s not abandoning its XR roadmap. Instead, the company aims to streamline operations, ensuring that remaining projects are more focused, viable, and aligned with future consumer demand.