Meta cuts over 1,000 jobs in major metaverse retreat

Core Insights - Meta Inc. is cutting 10% of its employees, which amounts to over 1,000 jobs, from its Reality Labs division as part of a strategic shift in investment focus away from metaverse products towards wearables [1][4] - The company plans to reinvest the savings from these job cuts to support the growth of wearables in the current year [1] - Reality Labs has incurred over $70 billion in losses since 2021, with a reported operating loss of $4.4 billion in the third fiscal quarter alone [4] Investment Strategy - The decision to reduce workforce in Reality Labs aligns with Meta's strategy to shift investment from metaverse initiatives to wearable technology [1][4] - Meta is in discussions with EssilorLuxottica SA to potentially double the capacity for AI-powered smart glasses by the end of the year, indicating a focus on expanding its wearables segment [6] Operational Impact - The layoffs will be communicated to affected employees, as noted in an internal message from Chief Technology Officer Andrew Bosworth [2] - The Reality Labs division includes various hardware and futuristic product efforts, such as VR headsets and AI glasses, which have not performed well financially [4]