Report: Meta reorganizes Reality Labs team, establishes two divisions for Metaverse and Wearables

Meta is looking to optimize its operations in the Web3 and wearables markets. The company has split its Reality Labs team into two separate divisions – one focusing on metaverse-oriented Quest headsets and the other on potential hardware wearables. Meta’s CTO, Andrew Bosworth, made this announcement earlier this week.

Reality Labs was formed after Facebook rebranded to Meta in 2021, officially becoming a unit in 2022. This division consolidated various projects within Meta, including Artificial Intelligence, virtual headsets, and CTRL Labs. It later became the focal point for Meta’s exploration into metaverse technology.

According to a report by The Verge, Bosworth detailed the internal restructuring through a memo and mentioned layoffs for some team members. Although the exact number of layoffs is undisclosed, it was reported to be a small group.

Going forward, Meta’s metaverse initiatives will be managed by the newly formed Metaverse division. This unit will oversee the Quest VR headset, Horizon OS, and Horizon Worlds. Vishal Shah, leader of Horizon, will now oversee developments related to Quest headsets.

In recent years, Meta introduced the ‘Meta Quest Pro’ in 2022 and the Meta Quest 3 in 2023. The company reportedly sold 20 million Quest headsets as of March 2023.

Meta’s journey into the metaverse began with the rebranding to Meta in 2021. Despite challenges in the industry, Meta continues to invest in metaverse initiatives. The Reality Labs unit reported losses but remains committed to exploring the potential of the metaverse.

In a study commissioned by Meta in May 2023, it was projected that the metaverse could significantly contribute to the US GDP by 2035. Zuckerberg anticipates further losses in the near future but is optimistic about the opportunities presented by the metaverse.