Mark Zuckerberg stated that AI infrastructure would give Meta a competitive edge, echoing his previous sentiments about the metaverse. An upcoming announcement from Meta, as reported by an anonymous source in The New York Times, suggests that around 10% of employees in the Reality Labs division may be laid off, affecting approximately 1,500 individuals out of a total workforce of 15,000.

Formerly known as Oculus, Reality Labs transformed into Meta’s virtual and augmented reality arm after Facebook’s acquisition in 2014. The division produces VR headsets, Ray-Ban Stories smart glasses, and software like the Horizon Worlds platform. Meta’s Chief Technology Officer, Andrew Bosworth, has scheduled a crucial meeting for Reality Labs staff following the layoff news.

Speculation about these changes had been circulating earlier, with James Pero from Gizmodo hinting at an impending shift towards AI following budget cuts. Meta recently unveiled ambitious plans for expanding its data center capacity under the project name Meta Compute, aiming to develop significant AI computing capabilities by the end of the decade.

In an effort to navigate these transitions smoothly, Meta appointed Dina Powell McCormick as the new president and vice chairperson. Zuckerberg emphasized the importance of strategic infrastructure development for Meta’s success and resilience against future challenges in a public statement. This approach aligns with his vision for leveraging technology to enhance user experiences and ensure long-term competitiveness.