Meta has begun laying off more than 1,000 employees from its Reality Labs division, which develops virtual reality and metaverse products, according to Bloomberg. The company plans to refocus on wearables, including its latest AI-powered Ray-Ban smart glasses, as stated in a memo from Chief Technology Officer Andrew Bosworth.
Reality Labs has reported losses exceeding $70 billion since the start of 2021. Meta renamed itself from Facebook to Meta that year as part of Mark Zuckerberg’s investment in the metaverse. Despite successes with consumer VR headsets and smart glasses, the division’s revenue has not covered its expenses.
Meta’s metaverse strategy now targets mobile devices, integrating future wearables with existing mobile apps. In the memo sent to staff this morning, Bosworth wrote: “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.”
The company is not ending VR headset development. Bosworth noted that the VR division will operate as a leaner, flatter organization with a more focused roadmap to ensure long-term sustainability. Meta does not plan a follow-up to the Quest 3 in the near future.
