Meta Restructures Reality Labs Into 'Wearables' And 'Metaverse' Divisions
Meta has decided to restructure its Reality Labs into two divisions: Wearables and Metaverse. This change may result in some layoffs, according to The Verge, which obtained an internal memo from Meta's CTO Andrew Bosworth.
Quest 3 Brings Mixed Reality Mainstream
Bosworth wrote, "With Quest 3 bringing [mixed reality] into the mainstream, we feel that all the major components are in place for us to grow our software platform consistently." He emphasized that Meta is "deeply committed to investing in Horizon," which serves as the foundation for their social, spatial Horizon OS and high-quality experiences for both mixed reality and mobile.
New Divisions for a Better Product Experience
By splitting Reality Labs into "Wearables" and "Metaverse," led by Vice President of Metaverse Technologies Vishal Shah, Bosworth believes Meta can create "more integrated product experiences across hardware, software, and experiences with less friction and fragmentation."
Ray-Ban Meta Glasses: A Surprising Hit
One reason for the Wearables division is the unexpected success of the Ray-Ban Meta glasses. Bosworth noted that these glasses were "a much bigger hit than we anticipated." He explained, "We are doubling down on finding a strong product market fit for wearable Meta AI, building a business around it, and expanding the audience."
Restructuring Virtual Reality Teams
Meta is reorganizing all its virtual-reality teams into two groups: one focused on the Quest VR headset line and another on other Meta hardware products. This change has led to some layoffs, as per the memo.
A Move to Reassure Investors
This restructuring is also a way to address investor concerns. Despite revenue growth in Q1 and further investment in AI technologies, the money Meta has invested in its Quest headsets isn’t showing significant sales. The division lost $3.8 billion in Q1 and reported losses of $16.1 billion and $13.7 billion in recent years.
CEO Mark Zuckerberg's Strategy
Meta CEO Mark Zuckerberg hinted at this strategy in April. He said, "Over time, we'll need to find better ways to articulate the value that's generated here across both segments so it does not just seem like our hardware costs increase as our glasses ecosystem scales while all the value flows to a different segment."
Bosworth mentioned that only "a relatively small number" of employees were let go due to the restructuring. These changes were necessary to remove redundant positions.
In conclusion, Meta's new structure aims to streamline its focus on innovative technologies and make its product offerings more consistent and integrated, all while addressing financial concerns and preparing for future growth.
