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Facebook tells hardware workers to expect cuts


Facebook (now known as Meta) recently warned its Reality Labs VR development division to brace for cuts, which could be a blow to the company’s Metaverse ambitions.

Reuters reports that Facebook (now Meta) recently warned its main metaverse development division, Reality Labs, to expect and prepare for cuts. CTO Andrew Bosworth told Reality Labs staffers during a weekly Q&A session that they expect the changes to be announced within a week.

Mark Zuckerberg presents Meta (Facebook)

Facebook tells hardware workers to expect cuts

GLENN CHAPMAN/AFP/Getty Images

A company spokesperson confirmed that Bosworth had told staff members that the division could not afford to continue developing some projects and that others would be postponed, but did not specify which products were being put on hold. side. The spokesperson noted that the company does not plan to lay off any employees as part of the reorganization.

Following a major drop in Facebook’s user numbers earlier this year that sent the company’s stock plummeting, Facebook told investors it would cut costs in 2022. In an earnings call, Facebook CEO Mark Zuckerberg said the company plans to “slow down.” of certain longer-term investments in areas such as its business platform, artificial intelligence infrastructure and Reality Labs.

Facebook lowered its total planned spending for 2022 to between $87 billion and $92 billion, a reduction from its previous planned costs of between $90 billion and $95 billion. Reality Labs has been a major focal point for Facebook as it continues to develop its metaverse virtual platform.

The division is responsible for the development of its virtual and augmented reality products, smart glasses and Portal video calling devices. The company has hired many employees to staff the division, adding more than 13,000 employees last year and nearly 6,000 in the first quarter of this year.

However, the division has always cost more than it earned, losing $10.2 billion in 2021 and another $3 billion in the first quarter of this year.

Learn more about Reuters here.

Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues. Follow him on Twitter @LucasNolan or contact by secure email at lucasnolan@protonmail.com




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