Why is Meta cutting Reality Labs employees?

Meta is cutting Reality Labs employees to reallocate resources and focus on developing next-generation artificial intelligence.

What is Meta's plan for AI development?

Meta is significantly increasing investment in AI research, aiming to build superintelligence and integrate AI into daily life through wearables.

Are Meta's smart glasses successful?

Yes, Meta's Ray-Ban smart glasses have sold over two million units and are seen as a key platform for integrating AI.

Home / Business and Economy / Meta Shifts Focus: Metaverse Cuts, AI Takes Center Stage

Meta Shifts Focus: Metaverse Cuts, AI Takes Center Stage

13 Jan

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Summary

Meta plans to cut about 10% of Reality Labs employees.
The company is reallocating funds from VR to AI development.
Smart glasses sales have exceeded two million units.
Investors are wary of Meta's significant AI spending.

Meta Shifts Focus: Metaverse Cuts, AI Takes Center Stage

Meta is undergoing a significant strategic realignment, intending to cut around 10 percent of the employees within its Reality Labs division. This move comes as the company pivots its priorities to heavily invest in next-generation artificial intelligence. The layoffs, potentially announced as soon as Tuesday, will impact those working on virtual reality headsets and the metaverse social network.

This strategic shift signifies a potential scaling back of Mark Zuckerberg's long-term metaverse vision, which has seen billions invested since the acquisition of Oculus in 2014. Despite significant spending on VR hardware, consumer adoption has not met expectations. Concurrently, Meta is increasing its investment in AI research, aiming to develop superintelligence and seeing its augmented reality products, like smart glasses, as key to integrating AI into daily life.