Meta Restructures Reality Labs, Leading to Layoffs
Meta, previously known as Facebook, is restructuring its Reality Labs division into two new segments: "Wearables" and "Metaverse." This change will result in some layoffs within the company.
Mixed Reality Coming to Mainstream
According to Meta CTO Andrew Bosworth, the introduction of the Quest 3 headset is bringing mixed reality into the mainstream market. This development means the company feels prepared to grow its software platforms consistently. One significant part of this growth is the investment in Horizon, which is the core foundation for social and spatial experiences through Horizon OS.
New Divisions: Wearables and Metaverse
The goal behind dividing Reality Labs into two divisions is to create more integrated product experiences across hardware and software, with less friction and fragmentation.
- Vishal Shah, Vice President of Metaverse Technologies, will lead the new Metaverse division.
- The new Wearables division is partly due to the success of the Ray-Ban Meta glasses, which have exceeded expectations.
Impact of Restructuring
This restructuring is the most significant change in Meta’s hardware division since it was renamed Reality Labs in 2020. Despite experiencing revenue growth and investments in AI technologies, the company has faced financial difficulties with its Quest headsets.
- The division lost $3.8 billion during the first quarter (Q1).
- Reported losses were $16.1 billion in 2023 and $13.7 billion in 2022.
Leadership Insights
Meta CEO Mark Zuckerberg stated that over time, the company needs to better explain the value they are generating in both the "Wearables" and "Metaverse" segments. Andrew Bosworth mentioned that the restructuring would result in a small number of job cuts because some roles will no longer be necessary.
This restructuring aims to help Meta streamline its operations and focus on providing high-quality experiences in both mixed reality and mobile applications.
