Meta Announces Layoffs in Metaverse Silicon Unit Amidst Strategic Shifts

Meta, the tech giant formerly known as Facebook, has confirmed plans to lay off employees from its metaverse-focused silicon unit this Wednesday. This decision comes as part of the company’s ongoing efforts to streamline operations and refocus on core strategic priorities.

Key Highlights:

  • The layoffs will affect the Reality Labs division, which is dedicated to creating custom silicon for the metaverse.
  • The announcement was made on Meta’s internal discussion forum, Workplace.
  • The exact number of affected employees remains undisclosed.
  • The silicon unit, known as the Facebook Agile Silicon Team (FAST), has approximately 600 members.
  • Challenges have arisen in producing competitive chips, leading Meta to collaborate with external providers like Qualcomm.
  • The company has faced other internal challenges, with key executives from different divisions departing recently.

Meta’s Reality Labs division has been at the forefront of the company’s push into the metaverse, a collective virtual shared space created by converging virtually enhanced physical reality and physically persistent virtual reality. The FAST unit, a part of this division, has been instrumental in developing custom chips to power Meta’s augmented reality (AR) and virtual reality (VR) devices. These chips are designed to perform specific tasks more efficiently, setting Meta’s devices apart from competitors.

However, the journey hasn’t been smooth. Despite the dedicated efforts of the FAST team, Meta has faced challenges in producing chips that can rival those of external providers. This has led the company to turn to chipmaker Qualcomm for its current market offerings. The restructuring of the FAST unit has been anticipated since earlier this year, especially after Meta brought in a new executive to lead the division.

Challenges and Changes at Meta:

The tech behemoth has undergone significant changes in recent times. Beyond the challenges in the silicon unit, there have been other shifts within the company. A separate chip-making unit in Meta’s infrastructure division, which focuses on artificial intelligence, has also encountered hurdles. The executive overseeing these efforts announced her departure recently, though a successor has been appointed.

Despite these challenges, Meta continues to innovate. The company recently unveiled new versions of its smart glasses and the Quest 3 headset at its annual Connect conference. Furthermore, Meta is in the process of developing more advanced AR glasses, which are expected to be sleeker and more akin to regular eyewear. These glasses, coupled with associated smartwatches, are set to be completed next year. However, they might not be immediately available to the general public.


Meta’s decision to lay off employees from its metaverse silicon unit underscores the challenges and complexities of pioneering in the rapidly evolving tech landscape. As the company navigates these changes, its commitment to the metaverse remains unwavering. However, the path to realizing this vision might require strategic shifts, collaborations, and tough decisions, as evidenced by the recent layoffs.