Meta is cutting hundreds of metaverse jobs now that AI is the priority
NegativeArtificial Intelligence
- Meta is reportedly cutting hundreds of jobs within its Reality Labs division, which focuses on metaverse development, as part of a strategic shift towards prioritizing artificial intelligence. The layoffs are expected to affect around 10% of the division's workforce, which consists of approximately 15,000 employees. This decision follows a broader budget reduction of 30% for the metaverse unit, reflecting ongoing changes in the company's focus and priorities.
- This development is significant for Meta as it marks a clear pivot from its ambitious metaverse plans, which have faced scrutiny and financial losses. CEO Mark Zuckerberg's decision to reallocate resources towards AI initiatives indicates a reassessment of the company's financial strategies in light of substantial losses, including a reported $77 billion in the metaverse sector. The layoffs and budget cuts signal a shift in Meta's long-term vision and operational focus.
- The cuts to the metaverse division highlight a broader trend in the tech industry, where companies are increasingly prioritizing AI and other emerging technologies over virtual reality and metaverse projects. This shift raises questions about the future of virtual reality and the viability of metaverse investments, especially as companies navigate economic pressures and changing consumer interests. The closure of three VR studios further underscores the challenges faced by Meta in realizing its metaverse ambitions amid a rapidly evolving technological landscape.
— via World Pulse Now AI Editorial System
