Meta (META) is reportedly cutting at least 10% of its metaverse staff as it continues to shift resources to developing artificial intelligence capabilities, according to sources cited by The New York Times.
The cuts will be predominately in Meta’s (META) Reality Labs division which develops virtual reality headsets. The unit currently employes ~15,000 individuals. The staffing reduction is not expected to impact the company’s augmented reality business which develops glasses and wristbands that allow interaction with computing menus through voice and gesture commands, thanks to the success of its Ray-Ban sunglasses. Last week, Meta (META) said it was delaying the international expansion of the Ray-Ban Display glasses due to “limited inventory” and “unprecedented demand.”
The decision to scale back Meta’s (META) virtual reality ambitions reflect lackluster demand for the company’s VR headsets, and frees up resources for AI development.
Meta (META) has earmarked up to $70 billion for AI development, infrastructure, high-performance chips, and talent—nearly double the amount allocated in its 2024 budget. On Monday, the company said it plans to establish a “top level” initiative to build tens of gigawatts of AI infrastructure this decade and hundreds more over time.