Meta Layoffs: WhatsApp, Instagram parent company to fire more employees soon, says report

Meta, the parent company of WhatsApp and Instagram, is not done with layoffs. The company is preparing to cut jobs in the Reality Labs division. The team is responsible for creating custom chipsets for the company. According to a report by Reuters, the employees have already been informed about the layoffs via the company’s professional networking platform. The report suggests that layoffs will take place on Wednesday when the affected employees will be notified about their status.

Meta has not offered any official confirmation about the layoffs. However, the report suggests that the cuts will happen in the team known as the Facebook Agile Silicon Team or FAST.

The potential significance of these layoffs cannot be understated, as they may impact Chief Executive Mark Zuckerberg's ambitious project to create augmented and virtual reality products that grant access to immersive virtual worlds known as the "metaverse." This includes the development of AR glasses that Zuckerberg believes will revolutionize our interaction with technology.

The FAST unit, which comprises approximately 600 employees, has been focused on designing custom chips to enhance the performance and efficiency of Meta's devices, differentiating them in the emerging AR/VR market. However, Meta has faced challenges in producing competitive chips internally and has turned to chipmaker Qualcomm to manufacture chips for its existing devices.

In a statement earlier this year, Zuckerberg indicated that most of the year's layoffs would occur in the spring but acknowledged that some changes might extend into the year's end.

The report suggests that a restructuring of the FAST division had been anticipated since earlier this year when Meta appointed a new executive to lead the unit.
Additionally, another chip-making unit within Meta, which concentrated on artificial intelligence work, has encountered obstacles. The executive in charge of those efforts recently announced her departure. But, Meta designated a successor to continue the work.

Meta currently produces mixed reality headsets like the Quest and smart glasses developed in collaboration with Ray-Ban's parent company, EssilorLuxottica. These devices are capable of streaming video and communicating with wearers through an AI virtual assistant. At its annual Connect conference, Meta unveiled new iterations of its smart glasses and the consumer-focused Quest headset.

The company is also working on technologically advanced AR glasses with a simple design, resembling regular eyeglasses. These are accompanied by associated smartwatches, with the first version of this product expected to be completed next year. However, Meta does not initially intend to make it widely available to consumers.

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