Meta has engaged in another round of layoffs, this time letting employees in the company’s Reality Labs division go.

Meta has poured billions into its “metaverse” plans, drawing the ire of investors along the way. The company already laid off employees in the division in late 2023, but the The Verge is reporting that the company is laying off yet more Reality Labs employees.

“Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size,” Meta spokesperson Tracy Clayton told the outlet. “These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience, while still delivering great content for people today. We remain committed to investing in mixed reality experiences, including fitness and games, and our drive to deliver the best experiences possible for the Quest and Supernatural communities remains unchanged.”

Economics of Change

CEO Mark Zuckerberg drew heavy criticism for his fixation with creating the metaverse, with employees blaming it for the company laying off tens of thousands of employees.

“The Metaverse will be our slow death,” one user, identifying as a senior software developer, posted on the anonymous forum Blind in late-2022. “Mark Zuckerberg will single-handedly kill a company with the meta-verse.”

“Poor leadership is on track to sink this ship,” another individual, who identified as a senior technical program manager, wrote. Their listed “cons” included: “No accountability at and above Director level. VPs and Directors are here to just milk the company without adding any value.”

“I thought it was a data-driven company but actually it is one man’s gut feeling and emotions-driven,” they added. “Nobody can overwrite his decision.”

Even an employee who was complimentary still said that “Zuck is leading this company in the wrong direction.”

Ultimately, the metaverse never really took off and has largely been replaced by AI as the tech industry’s latest obsession. As a result, Meta has switched to investing in AI development, much like every other Big Tech company. It seems the tech industry managed to get Zuckerberg and Meta to do what no one else could—slow down the stream of money being poured into the metaverse.