Facebook (now known as Meta) recently warned its Reality Labs VR development division to prepare for cuts, which could be a huge blow to the company’s Metaverse ambitions.
Reuters reports that Facebook (now Meta) recently warned its main metaverse development division, Reality Labs, to wait and prepare for cuts. Chief Technology Officer Andrew Bosworth told Reality Labs employees in a weekly Q&A that he expects the changes to be announced within a week.
A company spokesperson confirmed that Bosworth told employees that the division could not continue developing certain projects and that others would be delayed, but did not clarify which products were being shelved. The spokesperson noted that the company was not planning to lay off employees as part of the reorganization.
After a big drop in Facebook users earlier this year that sent the company’s shares plummeting, Facebook told investors it would cut costs in 2022.” of some long-term investments in areas like its business platform, infrastructure of artificial intelligence and Reality Labs.
Facebook has reduced its total expected expenses in 2022 to between $87 billion and $92 billion, a reduction from previous expected costs of between $90 billion and $95 billion. Reality Labs has been a key focal point for Facebook as it continues development of its metaverse virtual platform.
The division is responsible for the development of its virtual and augmented reality products, smart glasses and Portal video calling devices. The company has hired many into the division, adding more than 13,000 employees last year and nearly 6,000 in the first quarter of this year.
The division, however, consistently cost more than it earned, losing $10.2 billion in 2021 and another $3 billion in the first quarter of this year.
Read more on Reuters here.