Meta Plans Deep Cuts to Metaverse Efforts ⇥ bloomberg.com

Kurt Wagner, Bloomberg:

Meta Platforms Inc.’s Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook Inc.

Executives are considering potential budget cuts as high as 30% for the metaverse group next year, which includes the virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit, according to people familiar with the talks, who asked not to be named while discussing private company plans. Cuts that high would most likely include layoffs as early as January, according to the people, though a final decision has not yet been made.

Wagner’s reporting was independently confirmed by Mike Isaac, of the New York Times, and Meghan Bobrowsky and Georgia Wells, of the Wall Street Journal, albeit in slightly different ways. While Wagner wrote it “would most likely include layoffs as early as January”, Isaac apparently confirmed the budget cuts are likely large-scale personnel cuts, which makes sense:

The cuts could come as soon as next month and amount to 10 to 30 percent of employees in the Metaverse unit, which works on virtual reality headsets and a V.R.-based social network, the people said. The numbers of potential layoffs are still in flux, they said. Other parts of the Reality Labs division develop smart glasses, wristbands and other wearable devices. The total number of employees in Reality Labs could not be learned.

Alan Dye is just about to join Reality Labs. I wonder if this news comes as a fun surprise for him.

At Meta Connect a few months ago, the company spent basically the entire time on augmented reality glasses, but it swore up and down it was all related to its metaverse initiatives:

We’re hard at work advancing the state of the art in augmented and virtual reality, too, and where those technologies meet AI — that’s where you’ll find the metaverse.

The metaverse is whatever Meta needs it to be in order to justify its 2021 rebrand.

Our vision for the future is a world where anyone anywhere can imagine a character, a scene, or an entire world and create it from scratch. There’s still a lot of work to do, but we’re making progress. In fact, we’re not far off from being able to create compelling 3D content as easily as you can ask Meta AI a question today. And that stands to transform not just the imagery and videos we see on platforms like Instagram and Facebook, but also the possibilities of VR and AR, too.

You know, whenever I am unwinding and chatting with friends after a long day at work, I always get this sudden urge to create compelling 3D content.