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Meta Reality Labs Faces Layoffs, Shifting Focus to AI
13 Jan
Summary
- Meta plans to lay off approximately 10% of Reality Labs workers.
- The company is heavily investing in AI data center capacity.
- Dina Powell McCormick has been hired as president and vice chairperson.
Meta is poised to announce substantial job cuts within its Reality Labs division, with an estimated 10% of its 15,000 employees, approximately 1,500 individuals, facing layoffs as early as Tuesday. This restructuring comes as the company pivots its focus, moving away from its ambitious metaverse projects toward artificial intelligence.
This strategic shift is underscored by Meta's recent announcement of "Meta Compute," a massive data center expansion plan designed to build "tens of gigawatts" of AI computing power before the end of the 2020s. This initiative signifies a significant investment in the infrastructure required for advanced AI development.
Further bolstering its executive team and likely aiding in the management of this extensive infrastructure project, Meta has appointed Dina Powell McCormick, formerly an advisor to Republican presidents and a banking executive, as its new president and vice chairperson. CEO Mark Zuckerberg views this infrastructure development as a crucial "strategic advantage" for the company's long-term growth.
