Meta Accelerates Its Withdrawal from the Metaverse and Announces Layoffs of 1,000 Employees in Its Virtual Reality Division

The technology company Meta continues to scale back its ambitious bet on the metaverse and announced the layoff of approximately 1,000 employees from its virtual reality division, in a new phase of internal restructuring.

The measure primarily affects teams linked to Reality Labs, the area responsible for the development of virtual and augmented reality devices, as well as digital platforms associated with the metaverse ecosystem. Sources close to the company indicate that the cuts are part of a plan to reduce costs and redirect investments.

Changing Priorities

For months, Meta has been adjusting its strategy following lower-than-expected financial results in its virtual reality business. Although the metaverse was presented as the central focus of the company's future, the high development costs and limited user adoption have led to a thorough review of the project.

CEO Mark Zuckerberg recently indicated that the company will focus more resources on artificial intelligence, automation, and improvements to its main platforms, such as Facebook, Instagram, and WhatsApp.

Employment and Business Impact

These layoffs come on top of several rounds of cuts implemented by Meta in recent years, as part of what the company calls its "efficiency" phase. Industry analysts interpret this decision as a clear sign that the metaverse is no longer a short- or medium-term strategic priority.

Despite this, Meta stated that it will not completely abandon the development of immersive technologies, although it will significantly reduce its scale and pace of investment.

Industry Impact

Meta's partial withdrawal reinforces the skepticism within the tech industry regarding the immediate commercial potential of the metaverse and could influence other companies still considering significant investments in these types of platforms.

For now, the future of the metaverse remains uncertain, while Meta redefines its identity in a market increasingly dominated by artificial intelligence.