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Meta plans to downsize its Reality Labs division, the unit responsible for pioneering custom silicon to power the tech giant’s augmented and virtual reality hardware. According to a recent report by Reuters citing sources familiar with the matter, the announcement arrived via Meta’s Workplace discussion forum on Tuesday. Employees were advised they would be apprised of their standing with the company by Wednesday morning.&nbsp; 
Reality Labs, formerly at the core of Meta’s metaverse ambitions, has around 600 employees in its silicon unit alone, known as Facebook Agile Silicon Team or FAST. Their prime mandate revolves around custom chips designed for augmented and virtual reality hardware, including products like Meta’s Quest line of mixed-reality headsets and smart glasses created in collaboration with eyeglass maker EssilorLuxottica. 
<h2 class="wp-block-heading" id="mixed-fortunes-for-meta-s-augmented-reality-products">Mixed fortunes for Meta’s augmented reality products</h2> 
Moreover, Meta recently introduced new iterations of these smart glasses and the consumer-centric Quest 3 headset at their annual Connect conference. Additionally, the firm has been exploring the development of augmented reality glasses capable of projecting virtual objects onto see-through lenses. Alongside this, work has been progressing on corresponding smartwatches, according to one source. 
However, the Reality Labs division has faced challenges in chip development. Consequently, Meta has been relying on external chipmakers like Qualcomm for its current suite of products, including the Quest headsets and the Ray-Ban glasses. This reliance on third-party silicon vendors may be one of the catalysts for the imminent downsizing, although that remains speculative. 
Meta has cut approximately 21,000 jobs since November of last year in an attempt to appease investors by reducing expenses. This move was made in response to decreased revenue growth, high inflation, and concerns about the financial performance of Reality Labs. 
The broader context for Meta’s restructuring cannot be ignored. Significantly, the company has sunk over $36 billion into Reality Labs since 2019. Despite such a hefty investment, Meta has yet to score a mainstream hit in augmented or virtual reality. 
Besides Meta, other titans in Silicon Valley have been showing a keen interest in augmented and virtual reality tech, identifying it as the next frontier in computing. Yet, Apple and Microsoft have also pumped the brakes on their respective augmented and virtual reality projects. The twin challenges of daunting technological barriers and uncertain consumer demand continue to loom large. 
In light of these ongoing developments, speculation is rife about what this workforce trimming might signal for the future of Meta and the metaverse.

Meta reportedly plans to downsize staff in metaverse silicon unit

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