Meta shifts focus to wearables amid Reality Labs layoffs
â–¼ Summary
– Meta is laying off approximately 10% of its Reality Labs division, which develops XR products, starting Tuesday.
– The layoffs are part of a strategic shift to move investment from the metaverse toward wearables, as confirmed by a company spokesperson.
– Meta’s Ray-Ban smart glasses, particularly the recent Meta Ray-Ban Display, have gained more prominence than its VR headsets.
– The company is not abandoning the metaverse but is changing its strategy to focus more on mobile devices rather than a VR-first platform.
– Savings from the layoffs will be reinvested to support the growth of Meta’s wearables business this year.
The recent announcement of workforce reductions within Meta’s Reality Labs division signals a significant strategic pivot for the company. According to reports, approximately ten percent of the team responsible for extended reality (XR) products will be affected. A company spokesperson clarified that this move is a direct result of a previously stated plan to reallocate investment from broader metaverse initiatives toward the burgeoning wearables category. The savings from these organizational changes are intended to fuel further growth in that specific product line this year.
This shift in focus reflects the changing market dynamics and consumer interest surrounding Meta’s hardware offerings. In recent years, the Ray-Ban smart glasses collaboration has emerged as a standout product, particularly following the introduction of the Meta Ray-Ban Display last year. Its success appears to have overshadowed the company’s virtual reality headsets, making a strategic emphasis on AI-powered wearables a logical business decision. This does not signify a complete abandonment of the metaverse concept, but rather a recalibration of its approach.
An internal communication from Meta’s leadership indicates that the vision for the metaverse itself is evolving. The new strategy will reportedly prioritize mobile device accessibility over a VR-first model. This suggests a future where metaverse experiences are more integrated into everyday technology like smartphones, potentially broadening their appeal and utility. The company seems to be streamlining its ambitious XR projects, concentrating resources on areas with clearer commercial traction while adapting its long-term virtual platform to align with how people most commonly use technology today.
(Source: The Verge)
