Meta Platforms is preparing to make staff redundant from its Reality Labs division, which is focused on developing systems related to the Metaverse. Within this division is Facebook’s Agile Silicon Team (FAST), responsible for developing bespoke silicon technology. These upcoming lay-offs could significantly impact Meta’s large-scale initiatives, especially those related to the development of  augmented reality (AR) glasses. Meta has already made staff redundancies in an effort to assuage investor concerns and control costs. Since November last year, the company has laid off around 21,000 employees.

• Meta Platforms is reportedly preparing to lay off staff from its Reality Labs division, which focuses on Metaverse and silicon.
• The scale of the redundancies is not yet known.
• There are concerns about how this decision may affect Meta’s large-scale Metaverse initiatives, in particular the creation of AR glasses.

According to reports, Meta Platforms plans to carry out staff reductions in its Reality Labs division, which focuses on the Metaverse. A group of employees of the Facebook Agile Silicon Team (FAST), responsible for developing custom silicon, are included in the planned lay-offs. According to information, the announcement of the redundancies is expected to be made today or tomorrow, although the exact extent of the reduction is not yet known.

The decision raises some concerns about the potential implications for Meta’s ambitious Metaverse related Metaverse projects, in particular the development of AR glasses.

Developing customised chips is a major challenge. The FAST team, with around 600 employees, is responsible for creating chips that would increase the efficiency and capabilities and of Meta products in the growing AR/VR industry. The company has previously struggled to manufacture competitive chips, so it is now working with Qualcomm to supply chips for its devices.

The reorganisation of FAST has been anticipated since Meta hired a new manager this spring to oversee the department.

Impact on Metaverse Meta Initiatives

These redundancies could challenge Meta in developing augmented and virtual reality products that allow users to explore fascinating virtual worlds, referred to as Metaverse.

CEO Mark Zuckerberg is confident that these initiatives, including the development of AR glasses, will „change our relationship with technology”.

The company is aiming to expand its range with the launch of intelligent glasses in partnership with EssilorLuxottica, the manufacturer of Ray-Bans, and mixed reality headsets such as Quest 3.

Job cuts in response to investor concerns

As part of efforts to address the concerns of investors about cost control in the face of declining revenue growth, rising inflation and doubts about the financial performance of Reality Labs, Meta has made six lay-offs of around 21,000 employees since November last year.

To reassure investors the company wants to prove that it can and manage costs while also working on innovations and developing new technologies for Metaverse related projects.

Planned return to offices faces difficulties

In addition to redundancies, Meta’s preparations for staff to return to the office were described as 'problematic’, and employees faced challenges such as restrictions on the availability of meeting rooms and difficulties in accessing workstations in the offices as required.

It is not yet clear how Meta will reconcile its ambitious goals related to the Metaverse, investors’ concerns and maintaining a productive working environment for its remaining employees while embarking on these personnel changes and internal restructuring.