- Facebook parent Meta Platforms, Inc (NASDAQ:FB) is preparing cutbacks in its Reality Labs division to refocus on hardware products and the "metaverse," Reuters reports.
- Meta was not planning layoffs as part of the changes. The division could not afford to do some projects anymore and postponed others.
- According to Reuters, Reality Labs lost $10.2 billion in 2021 and another $3 billion in Q1.
- Also Read: Here's How Meta Looks To Monetize Its Metaverse
- Recently, Meta informed about decreasing hiring for most mid-to-senior-level positions.
- Meta also shared its plans of scaling back costs in 2022, following a drop in Facebook users early this year that caused the stock to plunge.
- During its earnings call, CEO Mark Zuckerberg said Meta planned to "slow the pace" of some longer-term investments in its business platform, artificial intelligence infrastructure, and Reality Labs.
- Meta has invested heavily in Reality Labs which now encompasses work on augmented reality, smart glasses, Portal video-calling devices, and enterprise tech solutions.
- The unit is also building a mixed reality headset with face and eye tracking called Project Cambria.
- Price Action: FB shares traded lower by 0.84% at $187.15 premarket on the last check Thursday.
- Photo by JD Lasica via Wikimedia
