Meta appears to be implementing major changes within Reality Labs. This is the division responsible for metaverse activities and Quest headsets.
The New York Times cites internal sources who say the company is working on a major restructuring. This could see 30 percent of the metaverse unit’s budget disappear. SiliconANGLE adds that this could lead to major reorganizations within the team that develops the hardware line.
The metaverse unit includes the Quest headsets and the social VR platform Horizon Worlds. The Quest 3, the current top model, runs on a modified Snapdragon XR2 Gen 2 chip and delivers high resolution per eye. Despite these technological improvements, Meta continues to struggle with limited consumer adoption of VR, while losses within Reality Labs continue to mount. According to SiliconANGLE, the company’s top brass is considering structural cuts to VR development resources, with between 10 and 30 percent of employees potentially losing their jobs.
Meta may rely on external suppliers
The potential restructuring comes at a time when rumors are circulating about a successor to the Quest 3. The new headset is said to feature a lighter design and a sharper display. It is still unclear how the budget cuts will affect those plans.
Some analysts speculate that Meta may slow down the development pace of its own hardware and lean more on external suppliers. That scenario is fueled by an earlier move in which Meta made the Quest’s operating system accessible to other manufacturers. By giving partners more leeway, the company can scale back its own investments without shutting down the VR ecosystem.
Horizon Worlds, the social environment that Meta positions as the core of its metaverse strategy, is also linked to the potential cutbacks. Although the platform has received several updates in recent years, user numbers remain below expectations. How the potential reorganization will affect the app’s future is not yet clear.
Meta has focused heavily on VR as the foundation for its long-term vision in recent years. Since acquiring Oculus in 2014, the company has been trying to convince a broad audience of the benefits of immersive digital environments. At the same time, strategic priorities in other technology areas are increasing, and the combination of rising costs and moderate market growth is forcing Meta to make difficult choices.