The company has been struggling to produce chips that can compete with those made by external suppliers, leading to a partnership with chipmaker Qualcomm. The layoffs are part of a larger restructuring effort, adding to the 21,000 job cuts since November of the previous year. These cuts are intended to address financial challenges due to rising costs, declining revenue growth, and high inflation.
Key takeaways:
- Meta is reportedly planning another round of layoffs, particularly in its metaverse division that develops custom chips for augmented and virtual reality products.
- The job cuts will impact the Facebook Agile Silicon Team (FAST), which has about 600 employees. The cuts could potentially hinder Meta's plan to develop immersive virtual worlds known as the "metaverse."
- Meta has been facing challenges in producing chips that can rival those manufactured by external suppliers, and has partnered with chipmaker Qualcomm to manufacture chips for its current devices.
- The recent layoffs add to the 21,000 job cuts Meta has made since November of the previous year, due to concerns about rising costs, declining revenue growth, high inflation, and financial challenges faced by Reality Labs.