What is Meta Reality Labs doing about its workforce?

Meta Reality Labs is undergoing layoffs, with about 10% of its staff set to lose their jobs as the company shifts focus.

Why is Meta investing heavily in AI data centers?

Meta is building significant data center capacity to support its strategic pivot towards developing advanced artificial intelligence.

Who is Dina Powell McCormick at Meta?

Dina Powell McCormick is the newly appointed president and vice chairperson of Meta, joining the company to aid in infrastructure development.

Home / Business and Economy / Meta Reality Labs Faces Layoffs, Shifting Focus to AI

Meta Reality Labs Faces Layoffs, Shifting Focus to AI

13 Jan

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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 Reality Labs Faces Layoffs, Shifting Focus to AI

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.