Meta Cuts Thousands of VR Jobs Amid Zuckerberg’s Vision Setback
Meta is taking significant steps to reshape its business strategy, particularly in the realm of virtual reality (VR). This shift follows years of substantial financial losses in its augmented reality ventures.
Meta’s Major Job Cuts in Reality Labs
Recently, the Wall Street Journal reported that Meta is laying off approximately 1,500 employees from its Reality Labs division. This represents nearly 10 percent of the division’s total workforce and comes as part of a broader transition from virtual reality to artificial intelligence (AI) products.
Closure of VR Game Studios
As part of these layoffs, three VR game studios have been closed. However, Horizon Worlds, Meta’s online VR game platform, continues to operate, albeit at a reduced capacity.
Shift from Metaverse to AI
- The layoffs mark a clear pivot from the metaverse concept, which had previously been central to Meta’s identity.
- Company spokespersons confirmed that investment is being redirected from metaverse initiatives toward developing AI wearables.
- This transition follows significant losses, with Reality Labs experiencing over $77 billion in losses since its establishment in 2020.
Challenges Ahead for AI Wearables
Despite this shift, the future of Meta’s AI smart glasses remains uncertain. The company recently paused international shipments due to inventory issues, raising concerns about regulatory hurdles and market saturation that could affect sales.
Production Plans Under Review
In a bid to adapt, Meta executives have talked about increasing production of the AI glasses. Initially, the plan was to produce 10 million units, but discussions are now leaning toward increasing this figure to 20 million, with the potential to reach 30 million by 2026 if demand supports it.
Conclusion
As Meta navigates these turbulent waters, the decision to cut jobs in its Reality Labs division signals a major strategic overhaul. The company’s departure from the metaverse, once the focal point of its vision, might ultimately be a necessary step towards a more promising future in AI technology.
