Meta, formerly known as Facebook, is reportedly gearing up for another round of job cuts, and this time it’s targeting its metaverse division, particularly the silicon unit responsible for developing custom chips crucial for Meta’s augmented and virtual reality (AR/VR) products. The layoffs could have far-reaching implications for Meta’s ambitious plans to shape the future of the metaverse.
Layoffs in the Metaverse:
According to reports, Meta is set to reduce its workforce in the silicon unit known as the Facebook Agile Silicon Team (FAST). While the company hasn’t provided official statements regarding the extent of the layoffs, it’s believed that these job cuts will be substantial.
Impacted employees were informed of the impending layoffs through an internal post on Meta’s discussion forum, Workplace, on Tuesday. The company is expected to communicate the status of affected employees by early Wednesday.
Potential Impact on Metaverse Development:
The timing of these layoffs is crucial as Meta is actively working on developing augmented and virtual reality products designed to facilitate users’ entry into immersive virtual worlds known as the “metaverse.” Mark Zuckerberg, Meta’s CEO, envisions these products, including AR glasses, as groundbreaking innovations that will redefine our interaction with technology.
However, if the layoffs significantly affect Meta’s FAST unit, which currently comprises approximately 600 employees, it could potentially hinder the development of custom chips for Meta’s devices. These chips are essential for Meta’s devices to perform specialized functions efficiently, differentiating them from other AR/VR devices entering the market.
Challenges in Chip Production:
Meta has faced challenges in producing chips that can compete with those offered by external suppliers. To address this, the company entered a partnership with chipmaker Qualcomm to manufacture chips for its existing devices.
The decision to implement this new round of layoffs was not unexpected, as Meta had been contemplating a restructuring of its FAST division following the appointment of a new executive to lead the unit.
Moreover, another division within Meta responsible for creating chips for artificial intelligence applications has encountered its share of challenges, with the head of the unit recently announcing her departure. Nevertheless, Meta has selected a successor to continue the work related to artificial intelligence and chip development within this division.
Addressing Financial Concerns:
These layoffs come on the heels of Meta’s previous round of job cuts, totaling approximately 21,000 since November of the previous year. These decisions were made in response to concerns about escalating costs, declining revenue growth, inflation, and financial challenges faced by Reality Labs, a subsidiary of Meta.
Mark Zuckerberg previously stated in March that the majority of this year’s job cuts would take place in the spring. However, he acknowledged that in some cases, workforce changes might extend until the end of 2023.
As Meta navigates these internal changes, the tech world watches closely to see how these developments will impact the company’s metaverse aspirations and the future of AR/VR technology.
