Meta, formerly known as Facebook, is set to lay off employees in its Reality Labs division, specifically in the unit responsible for creating custom silicon dedicated to the metaverse. According to sources familiar with the matter, the layoff announcement was made internally on Tuesday, with affected employees expected to receive notifications of their employment status by early Wednesday morning.
The company has remained tight-lipped about the details of the layoffs, with a Meta spokesperson declining to comment on the situation. It remains unclear how extensive these cuts will be within the silicon unit, officially known as the Facebook Agile Silicon Team, or FAST. FAST currently employs approximately 600 individuals, as confirmed by one of the sources.
FAST’s primary mission revolves around developing custom chips designed to power augmented and virtual reality hardware produced under Meta’s Reality Labs division. This division is responsible for creating cutting-edge products like the Quest line of mixed reality headsets and smart glasses, produced in collaboration with eyeglass maker EssilorLuxottica.
Just last week, at its annual Connect conference, Meta unveiled new versions of its smart glasses and consumer-oriented Quest headset, known as Quest 3. The company has also been reported to be working on augmented reality glasses capable of projecting virtual objects onto transparent lenses, along with associated smartwatches, according to one of the sources.
However, Meta has encountered difficulties in developing in-house chips that can effectively compete with those produced by external providers. As a result, the company has turned to Qualcomm, a prominent chipmaker, for the devices currently available on the market, including both Quest headsets and Ray-Ban smart glasses.
The layoff announcement marks a significant development within Meta’s Reality Labs division, as it continues to invest heavily in the development of metaverse-related technologies. The repercussions of these layoffs within the silicon unit remain uncertain, and employees are anxiously awaiting their individual notifications.
This situation underscores the competitive nature of the metaverse industry and Meta’s efforts to remain at the forefront of innovation, even as it grapples with internal challenges related to chip development.