Meta plans to cut investment in its metaverse team to save funds for its VR glasses business

According to a report by The New York Times cited by Jinshi Data, three informed employees stated that Meta Platforms (META.O) is considering layoffs in a branch of its Reality Labs division that is engaged in "metaverse" business, potentially starting as early as next month, affecting 10% to 30% of the team. This team is primarily responsible for VR headsets and VR-based social networks. Reality Labs consists of the metaverse division and the wearable devices division.

Insiders indicated that management expects to reinvest the funds saved from the layoffs into the AR glasses project. Meta launched AR glasses in collaboration with Ray-Ban in 2021, and their sales have exceeded the company's internal targets. Sources say that Meta is reassessing its investments related to the metaverse, and within the metaverse division, executives are considering significant cuts to VR-related positions.