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Facebook owner Meta prepares for cutbacks in Reality Labs, centre of metaverse strategy

  • Chief technology officer Andrew Bosworth told Reality Labs staffers the division could not afford some projects any more
  • The unit lost US$10.2 billion in 2021 and another US$3 billion in the first quarter, as CEO Mark Zuckerberg seeks to build the successor to the mobile internet

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A 3D printed logo for of Meta, Facebook’s rebrand, seen in front of a stock graph in this illustration taken on November 2, 2021. Photo: Reuters
Reuters
Facebook owner Meta Platforms Inc is preparing cutbacks in its Reality Labs division, a unit at the centre of the company’s strategy to refocus on hardware products and the metaverse, a spokesperson confirmed to Reuters on Wednesday.

Chief technology officer Andrew Bosworth told Reality Labs staffers during a weekly Q&A session on Tuesday to expect the changes to be announced within a week, according to a summary of his comments viewed by Reuters.

The Meta spokesperson confirmed that Bosworth told staffers the division could not afford to do some projects any more and would have to postpone others, without specifying which projects would be affected.

She said Meta was not planning lay-offs as part of the changes.

The world’s biggest social media company last month told investors that it would scale back costs in 2022, following a drop in Facebook users early this year that caused the stock to plunge.

In an earnings call in late April, chief executive Mark Zuckerberg said Meta planned to “slow the pace” of some longer-term investments in areas like its business platform, artificial intelligence infrastructure and Reality Labs.

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