Meta Platforms executes a major strategic realignment, shifting its focus from the metaverse to artificial intelligence. The company announced plans to reduce the Reality Labs workforce.
The layoffs impact approximately 10% of the division, affecting around 1,500 employees. Meta expects to formalize these changes as soon as Tuesday.
This restructuring coincides with the launch of "Meta Compute." The initiative aims to build tens of gigawatts of computing infrastructure dedicated to AI development this decade.
The prioritization of AI follows substantial losses incurred by the metaverse-focused Reality Labs. Following the news, Meta's stock closed down 1.7% at $641.97 on Monday.