Meta’s Metaverse Dream Dashed: Major Layoff

MetaversePlanet October 5, 2023

0 1 minute read

Although the Metaverse project was initiated amid much anticipation, it has slowly shifted towards becoming a letdown, prompting Meta to start layoffs in crucial departments.

Meta set out with the goal of bringing the Metaverse to the masses and continued its investments despite incurring losses amounting to billions of dollars. However, it appears that the circumstances have now escalated to a critical juncture.

Major layoffs in the Metaverse division

Meta's Metaverse Dream Dashed: Major Layoff

To bring its new vision to life, Meta established a division called Reality Labs, investing billions of dollars into it. This division launched a series of virtual reality headsets called Meta Quest and also started developing a proprietary chip.

Recent reports indicate that approximately 600 members of the chip development team, known as FAST, are facing layoffs. Throughout this week, those identified for dismissal have started to receive emails outlining their severance packages and the details of their departure process.

The creation of the FAST team aimed to reduce Meta’s dependence on external suppliers and to achieve vertical integration. However, as challenges emerged earlier this year, rumors of a major organizational restructuring began to circulate.

The disbandment of the FAST team could lead to significant repercussions, especially since there were plans in place for a Meta virtual reality headset to be powered by the FAST chip. Moreover, another team involved in chip designs for AI research is also experiencing instability. A few weeks back, the leader of that team unexpectedly resigned from his position.