Meta plans to lay off Metaverse employees this week (www.theverge.com)

Meta is set to lay off approximately 10 percent of its Reality Labs team, primarily impacting employees working on the metaverse, as reported by The New York Times. This decision reflects a strategic shift within the company towards enhancing its AI ambitions, which have overshadowed its focus on virtual reality. Meta's chief technology officer, Andrew Bosworth, has scheduled a significant meeting for staff, hinting at the gravity of the changes ahead for the division that employs around 15,000 individuals. The layoffs come in the wake of a reported 30 percent budget cut to Meta's metaverse initiatives, suggesting that the company is re-evaluating its investment in VR, particularly as products like Ray-Ban smart glasses gain traction. This shift raises questions about the future of the metaverse, especially given the mixed reception from users, who appear increasingly disengaged from virtual social platforms. The moves reflect broader trends in the rapidly evolving landscape of AI and XR, illuminating the challenges tech giants face in balancing innovative pursuits while adapting to market demands.