Meta’s metaverse dream fades as 1,000 employees are let go
Meta has started laying off more than 1,000 employees from its Reality Labs division, which develops virtual reality and metaverse products, to shift focus toward wearables such as AI-powered Ray-Ban smart glasses, according to a memo from Chief Technology Officer Andrew Bosworth.
Reality Labs has recorded losses exceeding $70 billion since the beginning of 2021. The division produced consumer virtual reality headsets and smart glasses. These efforts have not generated sufficient revenue to offset the expenditures involved.
Bloomberg reported the layoffs and strategic changes. Meta’s metaverse initiatives now target mobile devices. This approach integrates future wearables with current mobile applications.
Bosworth explained the rationale in his memo to staff. He stated, “With the larger potential user base and the fastest growth rate today, we are shifting teams and resources almost exclusively to mobile to continue to accelerate adoption there.” This realignment prioritizes areas with greater scale and momentum.
The virtual reality division persists under revised structure. Bosworth noted it will “operate as a leaner, flatter organization with a more focused roadmap to maximize long-term sustainability.” Resources concentrate on core priorities to ensure viability over time.
A follow-up to the Quest 3 virtual reality headset does not appear likely in the immediate future. The streamlined organization limits expansion of the product lineup amid these adjustments.