Key Takeaways
- Meta is set to announce layoffs in its Reality Labs division, affecting around 10% of the workforce, approximately 1,500 people
- The layoffs are part of a shift in priorities towards AI, with Meta announcing a massive buildout plan for data center capacity called Meta Compute
- The company has hired Dina Powell McCormick as its new president and vice chairperson to help with the construction of new data centers
- Meta’s focus on AI is seen as a strategic advantage, with CEO Mark Zuckerberg emphasizing the importance of investing in infrastructure
Introduction to Meta’s Restructuring
According to a recent New York Times article, Meta is set to announce a significant restructuring of its Reality Labs division, with around 10% of the workforce, approximately 1,500 people, set to lose their jobs. This move is seen as a shift in priorities towards artificial intelligence (AI), with the company announcing a massive buildout plan for data center capacity called Meta Compute. As the article notes, "My Gizmodo colleague James Pero strongly implied last month that something like this was coming, noting that a planned 30% budget cut at Reality Labs was, if not the death knell for the metaverse project at Meta, then at least a clear shift in priorities to AI."
The Evolution of Reality Labs
Reality Labs, formerly known as Oculus, was founded by Palmer Luckey and was originally funded through a Kickstarter campaign. Since being acquired by Facebook in 2014, the company has evolved into the "virtual and augmented reality"-focused division of Meta. As the article states, "Reality Labs was once Oculus, the VR headset company founded by Palmer Luckey, originally funded through a Kickstarter campaign. Since being acquired in 2014 by what was at the time called Facebook, Oculus has evolved into the ‘virtual and augmented reality’-focused division of Meta." The division has been responsible for developing headsets, smart glasses, and software, including the Horizon Worlds social networking platform.
The Upcoming Meeting and Layoffs
Meta CTO Andrew Bosworth has called for a meeting of Reality Labs staff members on Wednesday, which he has deemed the "most important" meeting of the year. The meeting is expected to take place the day after the layoff plan is officially made public. As the article notes, "The Times says Meta CTO Andrew Bosworth has called for a meeting of Reality Labs staff members on Wednesday that he has deemed the ‘most important’ meeting of the year, and indicated that employees are meant to attend in person." This meeting is likely to be a difficult one for employees, as they will be learning about the layoffs and the future direction of the company.
Meta’s Shift Towards AI
Meta’s focus on AI is seen as a strategic advantage, with CEO Mark Zuckerberg emphasizing the importance of investing in infrastructure. As he wrote in a statement, "How we engineer, invest, and partner to build this infrastructure will become a strategic advantage." This is not the first time Zuckerberg has used the term "strategic advantage" to describe the company’s push for more metaverse-related technology. In 2022, he stated, "Enabling more experiences is really the primary driver and then the sort of fortification against external risks is certainly a strategic advantage over the long-term." The company’s announcement of the Meta Compute buildout plan, which aims to build "tens of gigawatts" of AI compute before the end of the 2020s, is a clear indication of its commitment to AI.
The Hiring of Dina Powell McCormick
In a move likely aimed at smoothing over the friction involved in the construction of new data centers, Meta has hired Dina Powell McCormick as its new president and vice chairperson. McCormick, a former advisor to Republican presidents George W. Bush and Donald Trump, has also worked as a banking executive. Her hiring is seen as a strategic move by the company to help navigate the complex process of building new data centers and expanding its AI capabilities. As the article notes, "Also on Monday, Meta announced something sure to help smooth over the friction involved in all this AI data center construction: the hiring of Dina Powell McCormick—a former advisor to Republican presidents George W. Bush and Donald Trump, who has also worked as a banking executive—to be Meta’s new president and vice chairperson."
https://gizmodo.com/meta-reportedly-cutting-about-1500-vr-and-ar-jobs-amid-renewed-push-to-become-an-ai-juggernaut-2000708826
