Meta, the pioneering force behind the concept of the Metaverse, is encountering obstacles on its path to realizing its vision. According to inside sources, the company is set to implement staff reductions within its Reality Labs division, which is dedicated to developing specialized silicon for AR/VR devices. This development has raised concerns about Meta's ability to create competitive custom silicon and raises questions about its partnerships with external providers such as Qualcomm.
Approximately 600 employees are part of Meta's custom silicon division. Employees learned about the impending layoffs through Meta's internal discussion platform, Workplace, with notifications expected by Wednesday morning. While a Meta spokesperson declined to comment on the matter, these layoffs could potentially impede CEO Mark Zuckerberg's ambition to redefine human interaction with technology through augmented and virtual reality. The custom silicon unit, known as the Facebook Agile Silicon Team (FAST), plays a pivotal role in Meta's quest to make its devices stand out in the ever-growing AR/VR market.
The announcement of layoffs may signal larger challenges within Meta Platforms. The company has already shed approximately 21,000 jobs since last November, primarily as a response to investor concerns about sluggish revenue growth and high operational costs. This layoff might be another cost-cutting measure, particularly considering that Reality Labs has been incurring losses. It also raises doubts about Meta's commitment to internal innovation, especially as the company has turned to external chip manufacturer Qualcomm for its currently available devices.
Despite these setbacks, Meta remains steadfast in its pursuit of the Metaverse. The company continues to work on innovative products like sleeker AR glasses and smartwatches, expected to be finalized next year, though not initially aimed at mass consumer release.
