Meta is laying off roughly 10 percent of employees in its Reality Labs division, a unit central to the company’s virtual reality and metaverse efforts, as it reallocates resources toward artificial intelligence and augmented reality development.
Scale Of Layoffs At Reality Labs
According to a report by The New York Times, Reality Labs employed about 15,000 people, meaning the reductions could affect more than 1,000 workers. The publication said the layoffs are concentrated within teams tied to virtual reality and metaverse products.
Meta did not immediately respond to a request for comment on the job cuts.
Studio Closures And Internal Changes
Separately, CNBC reported that Meta plans to shut down several game development studios, including Armature Studio, Twisted Pixel, and Sanzaru. The company is also closing a technical unit known as Oculus Studios Central Technology, which had been working on virtual reality titles.
Business Insider reported that Meta’s chief technology officer and head of Reality Labs, Andrew Bosworth, called what he described as the most important in-person meeting of the year on January 14, amid internal changes within the division.
AR Development Excluded From Cuts
The New York Times reported that employees working on augmented reality projects are not expected to be affected by the layoffs. The company is continuing to invest in AR initiatives, including the development of smart glasses and controllers.
According to the report, Meta plans to redirect savings from the Reality Labs reductions toward its augmented reality efforts.
Broader Strategic Shift Toward AI
The restructuring comes as Meta increases its focus on artificial intelligence. The company rebranded itself in 2021 around the concept of the metaverse, but has since shifted resources toward AI research and product development.
In October, Meta moved its metaverse lead, Vishal Shah, into a vice president role overseeing AI products. Last year, the company reorganized to form its Superintelligence Labs after recruiting Alexandr Wang from Scale AI.
Meta has also offered compensation packages to researchers at other AI labs as part of efforts to attract talent and expand its AI capabilities.
Featured image credits: Flickr
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