Meta to fire employees working on metaverse silicon
What's the story
Meta Platforms is said to be gearing up for layoffs in its metaverse-focused Reality Labs division, specifically targeting the Facebook Agile Silicon Team (FAST) that works on custom silicon development. Insiders expect the announcement to come as soon as today. The scope of the layoffs remains uncertain. There are concerns about how this move might affect Meta's ambitious metaverse projects, especially the development of AR glasses.
Details
Challenges in custom chip development
The FAST team, made up of around 600 employees, is responsible for designing custom chips to boost the efficiency and capabilities of Meta's devices in the growing AR/VR market. However, the company has struggled to create competitive in-house chips, leading to a partnership with chipmaker Qualcomm for its current device lineup. The restructuring of FAST has been on the horizon since spring when Meta brought in a new executive to head the unit.
What Next?
Impact on Meta's Metaverse projects
These layoffs could potentially slow down Meta's progress in creating augmented and virtual reality products that grant access to immersive virtual worlds, or the "metaverse." Among these projects are the AR glasses that CEO Mark Zuckerberg thinks will "redefine our relationship with technology." The company has been working on expanding its product range, including mixed reality headsets like Quest 3 and smart glasses in collaboration with Ray-Ban maker EssilorLuxottica.
Insights
Workforce reductions amid investor concerns
Since November last year, Meta has cut around 21,000 jobs as part of its efforts to address investor worries about cost control amid declining revenue growth, increased inflation, and concerns about Reality Labs's financial performance. The company aims to reassure investors that it's keeping costs in check while continuing to innovate and develop new technologies for its metaverse projects.
Facts
Return-to-office plans face challenges
On top of the layoffs, Meta's return-to-office plans have been described as a "mess," with employees facing challenges like meeting space shortages and hot-desking issues. As the company deals with these workforce changes and internal restructuring, it remains to be seen how Meta will strike a balance between its ambitious metaverse objectives, addressing investor concerns, and maintaining a productive work environment for its remaining employees.
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