Meta lays off 1,500 employees in metaverse division, reveals WSJ

Meta reduces metaverse team by 10%

Meta Platforms, the parent company of Facebook, announced the layoff of 1,500 employees from its metaverse team, according to The Wall Street Journal. This reduction represents about 10% of the personnel working in the sector known as Reality Labs. The decision reflects an adjustment in the company's focus, which has not seen the expected growth in this area.

Reasons behind the layoffs

The company had already indicated its intention to cut the budget for the metaverse sector since December, suggesting that performance did not meet the established expectations. When contacted, Meta stated that it would not comment on the matter.

Impact of platform popularity

Despite high expectations, the Horizon Worlds platform, which aimed to serve as an immersive space in the metaverse, reported only 200,000 users in 2022. In comparison, Instagram has approximately 3 billion active users.

New direction focused on artificial intelligence

With the shift in focus, Meta is directing efforts toward the artificial intelligence sector. The company announced a $600 billion investment in AI data centers in the United States by 2025. This move represents a significant strategic change for the company's future.

New leadership at Meta

In a recent move, Meta appointed Dina Powell McCormick as president. McCormick, former advisor to ex-president Donald Trump, will help the company with fundraising, especially for the construction of AI data centers, under the guidance of CEO Mark Zuckerberg.

Future outlook

With the layoffs in the metaverse and a renewed focus on artificial intelligence, Meta signals a reassessment of its priorities. The company's next step may position it more competitively in the growing AI market, while the metaverse faces an uncertain future.