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Meta’s Reality Labs Division Plans Layoffs in Silicon Unit

In this post:

  • Meta plans layoffs in its silicon unit within the Reality Labs division, affecting its AR/VR projects.
  • Challenges in making custom chips led Meta to partner with Qualcomm for current devices.
  • Meta continues efforts in AR/VR technology, including sleeker AR glasses and smartwatches.

In recent developments, Meta, previously known as Facebook, is preparing for workforce adjustments within its Reality Labs division, with a specific focus on its silicon unit. Insider sources have reported that the social media conglomerate is taking steps to fine-tune its operational structure. 

While Meta has been making significant strides in developing the metaverse, the planned workforce adjustments in the silicon unit have raised questions about the company’s future endeavors in augmented and virtual reality (AR/VR) technology.

Internal communication on Reality Labs workforce changes

In an internal communication that has surprised many Meta employees, the company has revealed its intentions to reorganize its workforce within the Reality Labs division. This communication was disseminated via Workplace, Meta’s internal discussion forum. Employees are awaiting notifications about their employment status, expected to be delivered early Wednesday morning, as shared by undisclosed sources.

Although not yet quantified, these workforce adjustments could potentially affect the ambitious metaverse vision championed by Meta’s CEO, Mark Zuckerberg. Meta has been diligently developing AR glasses and virtual reality products aimed at reshaping human interaction with technology. These innovations are designed to provide users with immersive access to virtual worlds, a core element of the metaverse experience.

Potential implications for metaverse initiatives

Although not yet quantified, these workforce adjustments could potentially affect the ambitious metaverse vision championed by Meta’s CEO, Mark Zuckerberg. Meta has been diligently developing AR glasses and virtual reality products aimed at reshaping human interaction with technology. These innovations are designed to provide users with immersive access to virtual worlds, a core element of the metaverse experience.

Challenges encountered in custom silicon development

The affected unit, the Facebook Agile Silicon Team (FAST), plays a pivotal role in Meta’s quest to develop customized silicon chips for its AR/VR devices. These chips are essential for enabling unique features and enhancing operational efficiency. However, Meta has encountered obstacles in its internal chip development efforts, leading to collaboration with external chip manufacturer Qualcomm for its existing device lineup.

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The restructuring of the FAST unit has been anticipated since spring, coinciding with the appointment of a new executive to oversee its operations. Meta’s objective is to optimize its operations, ensuring efficient development of custom silicon chips to support its ambitious AR/VR projects.

Challenges extend to the AI chip division

Beyond the FAST unit, Meta’s infrastructure division has faced challenges within its AI-focused chip division. The recent departure of the executive overseeing these endeavors raised concerns. However, Meta has swiftly appointed a replacement to continue the company’s pursuit of AI chip development.

At present, Meta offers an array of mixed reality headsets under the Quest brand and smart glasses developed in partnership with EssilorLuxottica, the parent company of Ray-Ban. These products can stream video content and engage wearers through an AI-driven virtual assistant, underscoring Meta’s dedication to advancing AR/VR technology.

Meta’s forward-looking plans encompass the development of less conspicuous AR glasses designed to resemble conventional eyeglasses, along with the introduction of smartwatches. These initiatives underscore Meta’s commitment to diversify its product offerings and push the boundaries of immersive technology.

Gradual rollout for advanced AR glasses

While Meta aims to complete the initial version of its technologically advanced AR glasses next year, the company does not intend to release them widely to consumers immediately. This strategic approach may involve a phased rollout to ensure product readiness and market success.

The impending workforce adjustments form part of Meta’s broader strategy to manage its workforce efficiently. Since November of the previous year, Meta has taken steps to streamline its workforce, resulting in approximately 21,000 job cuts. These measures were implemented to address concerns regarding revenue growth, inflation, and the financial performance of the Reality Labs division.

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