Meta’s Reality Labs Division, the parent company of Instagram and WhatsApp, is reportedly planning to lay off employees following challenges in custom chip development. The division, responsible for developing custom chips, has faced difficulties in creating competitive silicon internally. As a result, Meta has turned to external chipmaker Qualcomm for its devices.
According to Reuters, employees were informed of the layoffs through Meta’s internal discussion forum Workplace. Notifications regarding their employment status are expected to be delivered soon.
The layoffs are expected to affect the Facebook Agile Silicon Team (FAST), a unit of Meta comprising nearly 600 employees. FAST is primarily focused on designing custom chips to enhance the performance and efficiency of Meta’s devices, particularly in the emerging reality and virtual reality (AR/VR) market.
Meta’s CEO, Mark Zuckerberg, envisions the development of augmented reality glasses that would revolutionize human interaction with technology. While Meta has made strides in the AR/VR space with its mixed reality headsets and smart glasses developed in partnership with EssilorLuxottica, its chip development efforts have lagged behind. The company’s existing devices, including Quest headsets and Ray-Ban smart glasses, rely on chips produced by Qualcomm, highlighting Meta’s reliance on external assistance.
Earlier this year, there were speculations about a restructuring of the FAST division, coinciding with the appointment of a new executive to lead the unit. Additionally, another chip-focused unit within Meta specializing in artificial intelligence has faced challenges, with its executive recently announcing her departure.
Despite these setbacks, Meta remains committed to the development of AR/VR technologies. The company recently unveiled new iterations of its smart glasses and the consumer-oriented Quest headset at its annual Connect conference. Meta is also actively working on advanced AR glasses with a sleek, eyeglasses-like design, accompanied by associated smartwatches. The first version of these AR glasses is expected to be completed by next year.
While Meta has not officially confirmed the reports of layoffs in its Reality Labs Division, industry observers will closely monitor the company’s next moves in the ever-evolving landscape of augmented and virtual reality.
