Meta is reportedly planning to lay off around 10% of its Reality Labs staff, approximately 1,500 employees, as it shifts its focus towards artificial intelligence (AI). The division, which has around 15,000 staff members, focuses on virtual reality (VR) gear and its platforms Horizon Worlds and Horizon Workrooms.
Their Budget Cuts
They have been cutting their metaverse budget over the past year, reallocating funds to AI initiatives. In December, reports emerged that they were potentially reducing their budget by 30%, sparking concerns about the company’s commitment to the sector.
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Reality Labs’ Struggling Performance
Infamously, Reality Labs’ event measured losses of $4.4 billion in just one quarter and has also racked up over $70 billion intotal losses since the launch, back in the summer of 2020.
The situation has been deteriorating throughout 2022 as the division counted on low adoption of its platforms by users. The situation was so dire, according to sources, that there were fewer than 900 daily users for Horizon Worlds.
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In Conclusion
They will be shifting the bulk of the funds earmarked for Reality Labs to its wearables division, which will be a lot more focused on smart glasses and wrist-worn devices like the Meta Neural Band.
In short, their decision to focus on AI is an important change of direction for the company, which in 2021 changed its name from Facebook to Meta to signal its new focus on the metaverse. As the crypto and blockchain space continues to change and grow, it is clear that Meta is changing its game plan in order to remain a strong player.
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