Meta share in red: job cuts in loss-making VR division

A Meta spokesman confirmed a report by the Bloomberg news agency that more than 1,000 jobs would be lost as a first step. The Meta share temporarily lost 2.16 percent to $628.12 on the NASDAQ on Tuesday.

Billions in losses for years

The Reality Labs division posted an operating loss of over $13 billion in the first nine months of last year alone – with sales of just $1.2 billion. The business had looked like this for years. In conference calls about quarterly figures, analysts occasionally asked CEO Mark Zuckerberg whether it wasn’t time to take a step back in this area. However, he noted that Meta did not want to risk missing out on potential future business.

Glasses frames for AI

However, it has already become apparent in the past few months that some areas within the Reality Labs are going better than others. Meta has been relatively successful with glasses frames that have a camera, microphone and speaker – and look largely like conventional glasses. According to Zuckerberg’s idea, artificial intelligence technology should provide the necessary context to the user’s environment. The software sees and hears everything that people perceive. In a new model, Meta also added a small display in one of the glasses to display information.

As the Bloomberg news agency reported, the glasses are said to be doing so well that Meta is considering doubling production capacity with its European eyewear partner EssilorLuxottica – the owner of the Ray Ban brand. Capacity could climb to 20 million units or more by the end of this year, it said. Bloomberg cited information from people familiar with the matter.

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