Why is Meta laying off workers again?

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Social media giant Meta said it’s cutting more than 1,000 workers and closing several content studios as it focuses its efforts on artificial intelligence-powered wearables such as smart glasses.The reductions are within Meta’s Reality Labs division where employees work on the metaverse, digital spaces where people socialize, work, learn and do other online activities.

Game development studios Armature, Sanzaru and Twisted Pixel are shutting down, Meta confirmed.“We said last month that we were shifting some of our investment from Metaverse toward Wearables,” a company spokesperson said in a statement on Wednesday.“This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.” The job cuts highlight how tech companies are responding to the frenzy surrounding AI that can generate text, images and other type of content.

The rising popularity of AI means that companies are also competing to sell new hardware beyond smartphones and trying to release more AI-powered tools quickly.ChatGPT maker OpenAI teamed up with former Apple designer Jony Ive to build new AI-powered devices.The AI company also partnered with Mattel to build AI toys.

Companies have been trying to lure top talent with lucrative packages, but even employees working in AI haven’t been spared cuts.Meta, based in Menlo Park, has been hit with several rounds of layoffs, including in a division that’s working on AI that surpasses human intelligence.

In October, Meta Chief AI Officer Alexandr Wang told its employees that reducing the team size meant “fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact.”Last year, the company also shed 3,600 jobs.Meta said at that time the company focused on cutting low-performers, though some laid-off employees disputed that characterization....