- Meta’s hardware division Reality Labs is cutting back on spending, a spokesperson confirmed to Reuters.
- Reality Labs has generated $6.2 billion in losses over the past two quarters.
- Meta has also introduced a staff freeze at Facebook.
Meta’s Reality Labs hardware division is bracing its workforce for budget cuts, Reuters reported.
Reuters saw a summary of comments made by Meta’s chief technology officer, Andrew Bosworth, to Reality Labs staffers during a weekly question-and-answer session on Tuesday.
A Meta spokesperson confirmed to Reuters that Bosworth had told staff the division would be unable to pay for some projects and others would have to be postponed.
Reality Labs is central to Meta’s ambitions to become a metaverse company. The term “metaverse” is borrowed from science fiction and refers to a future version of the Internet that can be accessed primarily through immersive technologies such as AR and VR.
Reality Labs cost Meta $2.9 billion in the first quarter of 2022 and $3.3 billion in the last quarter of 2021. Zuckerberg told investors in an April conference call that the company would slow the pace of some of its investments.
So far, the company has announced that Reality Labs is working on a high-end VR headset called “Project Cambria” and AR glasses called “Project Nazare”.
Reality Labs isn’t the only part of Meta’s business trying to cut costs. Facebook told staff in early May that it was introducing a major staff freeze in a memo first reported by Insider. The staff freeze has raised concerns among some Facebook employees that layoffs could be next, Insider’s Kali Hays reported.
A Meta spokesperson told Reuters that layoffs are not part of Reality Labs’ cost-cutting plans.