Techfullpost

Meta is terminating workers at Reality Labs

Meta is terminating workers at Reality Labs

Meta has confirmed another round of layoffs, this time targeting its Reality Labs division, though the exact number of affected employees remains undisclosed. This move comes as part of the company’s ongoing “Year of Efficiency” initiative that began in 2023, which has already seen Meta reduce its workforce by about 22% across multiple waves of cuts.

Areas Most Affected by the Cuts

The restructuring has particularly impacted:

  • Oculus Studios teams developing games for Quest VR headsets
  • Hardware development groups working on future VR/AR devices
  • Supernatural, Meta’s flagship VR fitness platform acquired for $400 million in 2021

A message posted to the official Supernatural Facebook group suggests these changes aim to “help us work more efficiently on what the future of fitness could be,” indicating possible strategic redirection rather than complete abandonment of the fitness vertical.

Behind Meta’s Reality Labs Restructuring

Mixed Signals in Meta’s VR Strategy

Meta spokesperson Tracy Clayton explained the changes reflect structural shifts meant to improve efficiency in developing “future mixed reality experiences.” This carefully worded statement suggests:

  1. A continued commitment to VR/AR development
  2. Potential reallocation of resources toward more promising projects
  3. Possible deprioritization of certain existing VR content

The Broader Context of Meta’s VR Challenges

These layoffs occur against a backdrop of:

  • Disappointing Quest headset sales, with the Quest 3S already seeing price cuts
  • Strong performance of Meta’s Ray-Ban smart glasses, exceeding expectations
  • Ongoing financial losses in Reality Labs, which reported $3.8 billion in operating losses in Q1 2024 alone

Analyzing the Implications

What This Means for the VR Industry

  1. Content Development Slowdown: Fewer resources for Oculus Studios may mean fewer first-party VR titles
  2. Strategic Reprioritization: Meta appears to be shifting focus from pure VR toward mixed reality
  3. Hardware Uncertainty: Layoffs in hardware teams raise questions about future device roadmaps

The Supernatural Paradox

The treatment of Supernatural is particularly noteworthy:

  • Legal Victory: Meta successfully defended its acquisition against antitrust challenges
  • High Investment: The $400 million purchase was one of Meta’s largest VR content acquisitions
  • Current Downsizing: Despite this, the team is now facing cuts

Expert Perspectives on Meta’s Moves

Industry analysts suggest several interpretations:

  • Cost-Cutting Measure: Part of Zuckerberg’s efficiency drive amid massive Reality Labs losses
  • Strategic Pivot: Possibly reallocating resources toward AI integration in VR/AR
  • Market Realignment: Responding to slower-than-expected VR adoption rates

The Road Ahead for Meta’s Metaverse Vision

While these cuts might suggest wavering commitment, Meta maintains it’s still investing heavily in mixed reality. Key questions remain:

  • Will these efficiency moves accelerate profitability in Reality Labs?
  • How will content quality be affected by reduced development teams?
  • Does this signal a broader shift in Meta’s metaverse strategy?

One thing is clear: Meta continues to balance its ambitious long-term VR/AR goals with the financial realities of running a public company. These layoffs represent another adjustment in that delicate balancing act rather than a wholesale retreat from the metaverse vision.

ADVERTISEMENT
RECOMMENDED
NEXT UP

Meta is pushing deeper into AI territory with new AI-editing tools in Instagram Stories, where users can edit images and videos simply by typing in what they want to modify. From hair color to special effects, the feature upends the possibilities of creators and regular users alike to personalize their content.

Text Prompts Meet Visual Creativity

Until now, Instagram’s AI editing tools were primarily accessible through Meta AI’s chatbot, which required users to interact via direct messages. With this latest integration, however, AI editing becomes native to Stories, allowing anyone to make instant visual edits using plain language commands.

These new edit features come under the “Restyle” menu that can be accessed using the paintbrush icon in Instagram Stories. One can type commands such as “give me a sunset background,” “remove the person in the corner,” or “color my hair pink.” The AI carries out the edit one wants within seconds.

Meta suggests that users only have three primary actions to select from — Add, Remove, or Change — while specifying what they’d like to alter. The AI will automatically add objects, alter appearances, or completely restyle the photo based on what they’ve described.

Preset Effects and Dynamic Video Edits

In addition to custom prompts, Instagram also has pre-select AI effects that can beautify or stylize posts. Filters like sunglasses, a denim jacket, or even a watercolor art effect can be applied.

On video content, the feature does even better — creators are able to superimpose atmospheric effects like falling snow, glowing embers, or cinematic lighting, which makes Stories appear more polished and professional without the necessity of using editing apps.

Privacy and AI Usage Terms

While the new features enable creativity, they come with privacy implications. Being used to introduce users to Meta’s Terms of Service for AI, which allow the company to “analyze photos and videos, including facial data, to make AI better.” According to Meta, it allows its systems to “summarize image contents, edit images, and generate new content based on the image.”

Critics have also had concerns regarding the ways in which such data might be used to train Meta’s broader AI models, though the company has sworn to remain committed to responsible innovation and transparency.

Meta’s Expanding AI Push

The release of AI editing software is just part of Meta’s overall strategy to roll out artificial intelligence on every platform it has, from Facebook and Instagram to WhatsApp. Recently, Meta began beta-testing a “Write with Meta AI” feature, which helps users compose intelligent or engaging comments under Instagram posts.

Meanwhile, Meta’s separate Meta AI app — with its chatbot and new “Vibes” AI-generated video stream — has been picking up steam. According to Similarweb estimates, iOS and Android daily active users rose from 775,000 to 2.7 million over a four-week span as of October 17.

Protecting Younger Users

As a response to increasing complaints from regulators and parents, Meta has also added new parental tools for its AI features. Parents may now shut off chats with AI characters and filter topics that their teens have with the chatbot to provide a safer online environment.

With these new instruments, Instagram is not only emerging as a social network but a creative platform fueled by generative AI. With Meta, OpenAI, and Google competing for leadership, this launch shows how AI is becoming more a part of the social fabric of our era — blurring the line between creativity, technology, and self-expression.

Meta is rolling out red carpet treatment for AI startups with its new Llama for Startups initiative—offering cash, technical support, and exclusive access to its AI engineering team. But beneath the generous facade lies a fierce battle for dominance in the trillion-dollar generative AI market.

What Startups Get From Meta’s Program

  • 💰 **Up to 36,000∗∗(36,000∗∗(6K/month for 6 months) in cloud credits
  • 🤝 Direct engineering support from Meta’s Llama team
  • 🔧 Early access to custom Llama model fine-tuning tools
  • 🌐 Networking with other AI-first startups

Eligibility requirements are surprisingly accessible:

  • U.S.-based incorporation
  • Less than $10M in total funding
  • At least one developer on payroll
  • Building generative AI products

Deadline to apply: May 30, 2024

Why Meta Needs Startups More Than Ever

Despite 1 billion+ Llama downloads, Meta faces mounting pressure:

🔥 Competitive Threats

  • Google’s Gemini and Anthropic’s Claude dominate enterprise adoption
  • OpenAI’s GPT-4o leads in multimodal capabilities
  • Mistral, DeepSeek, and Alibaba’s Qwen are winning open-source favor

🚨 Recent Llama Stumbles

  • Llama 4 Behemoth delayed due to underperformance (WSJ)
  • Benchmark cheating allegations on LM Arena leaderboard
  • Public vs. “optimized” model discrepancies eroding trust

💸 Meta’s Make-or-Break AI Bet

  • Projecting 2B−2B−3B AI revenue in 2025
  • Banking on 460B−460B−1.4T by 2035 (yes, trillion)
  • Spending $900M+ annually just on GenAI R&D

The Hidden Strategy Behind the Startup Play

This isn’t just altruism—it’s a three-pronged chess move:

  1. Lock-In Future Customers
    Startups that build on Llama today become enterprise buyers tomorrow.
  2. Crowdsource Innovation
    Early adopters essentially beta-test new Llama capabilities for free.
  3. Combat Open-Source Defections
    With alternatives like Mistral gaining traction, Meta needs to make Llama indispensable.

What’s Really at Stake?

Meta’s playing a long infrastructure game:

  • 60B−60B−80B earmarked for 2025 data centers
  • Revenue-sharing deals with cloud providers hosting Llama
  • Future Llama API monetization (Zuck hinted at ads/subscriptions)

For startups, the calculus is simple:
✅ Free money and support in a cash-strapped AI winter
❌ Risk of vendor lock-in as Llama evolves

Should Your Startup Apply?

The case for jumping in:

  • If you’re already using Llama, this is free acceleration
  • Early access could provide competitive edge
  • Meta’s engineering insights are gold dust for product refinement

Reasons to hesitate:

  • $36K doesn’t go far with today’s GPU costs
  • Potential IP concerns working closely with a tech giant
  • Llama’s long-term roadmap remains uncertain

The Bottom Line

Meta’s throwing a Hail Mary to cement Llama as the open-weight model of choice. For scrappy AI startups, it’s a rare chance to piggyback on Meta’s war chest—just don’t mistake it for a long-term partnership.

ADVERTISEMENT
Receive the latest news

Subscribe To Our Weekly Newsletter

Get notified about new articles