KEY POINTS
Meta is restructuring its metaverse division, Reality Labs, which will result in some employees losing their jobs.
According to a report from The Verge, Meta’s CTO Andrew Bosworth, who leads Reality Labs, announced that the division will be split into two units: Metaverse and Wearables.
The Metaverse unit will focus on the Quest headset line, while the Wearables unit will cover the rest of Meta’s hardware efforts, including its smart glasses in collaboration with Ray-Ban.
This reorganization marks the most significant change for Reality Labs since 2020. The restructuring will lead to layoffs, primarily targeting leadership roles that are now redundant due to the new organizational structure.
Despite market challenges, Meta remains committed to its metaverse-focused mission. Recently, the company shut down its Workplace app to concentrate more on the metaverse and AI. This decision aligns with Meta’s ongoing efforts to prioritize its vision for the metaverse.
Nonetheless, Meta has faced several obstacles in recent times. In December, the company struggled with a significant drop in VR headset sales, which fell nearly 40% in 2023. Meta’s Reality Labs reported over $1 billion in Q4 sales in February, but also faced a $4.65 billion operating loss.
Despite these challenges, Meta continues to roll out new advancements and devices. In April, the company celebrated a decade of progress in the metaverse, reflecting on milestones such as the Oculus acquisition and developments in VR and smart glasses.
Additionally, Meta expanded its Meta Quest VR ecosystem by opening its operating system to third-party hardware makers like Asus, Xbox, and Lenovo.
