Meta encounters issues with Metaverse again

Despite not utilizing the wind of metaverse to its full potential earlier, Meta still remains persistent in its endeavours.

Meta, often considered the cradle of the Metaverse, is confronting challenges in its journey towards its ambitious vision. The tech giant reportedly intends to downsize its Reality Labs division, a team dedicated to developing custom silicon for augmented and virtual reality devices. This decision has surfaced amidst growing skepticism about Meta’s capability to produce competitive custom silicon, casting shadows on its existing collaborations with external vendors like Qualcomm.

Employees became privy to this development through Meta's internal communication tool, Workplace. Although the exact number of affected staff remains undisclosed, it's evident that repercussions will ripple through the division. The Reality Labs or Facebook Agile Silicon Team (FAST) is a significant unit, boasting a strength of around 600 experts, tasked with distinguishing Meta's devices in the rapidly expanding AR/VR domain.

Meta encounters issues with Metaverse again

However, the layoffs may be symptomatic of broader issues enveloping Meta Platforms. The firm has already jettisoned roughly 21,000 positions since the previous November. This drastic move was primarily a gesture to pacify investors who expressed concerns regarding stagnating revenue growth paired with escalating operational expenses. The recent layoffs could be seen as another economizing step, particularly considering the monetary challenges Reality Labs has been grappling with. Additionally, this action raises eyebrows over Meta's commitment to in-house innovation, especially when considering its reliance on external semiconductor giant Qualcomm for devices currently in circulation.

Nevertheless, adversity hasn't dampened Meta's resolve to steer towards the Metaverse. The enterprise remains invested in evolving its product line, with slimmer AR glasses and smartwatches on the horizon, set for unveiling next year. However, these innovations might initially be spared from large-scale consumer distribution.