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Facebook owner Meta Platforms (META.O) told employees on Friday that it would stop developing smart displays and smartwatches and that nearly half of the 11,000 jobs it eliminated this week in an unprecedented cost-cutting move were technology roles.

Speaking during an employee townhall meeting heard by Reuters, Meta executives also said they were reorganizing parts of the company, combining a voice and video calling unit with other messaging teams and setting up a new division, Family Foundations, focused on tough engineering problems.

The executives said further rounds of job cuts were not expected. But other expenses would have to be cut, they said, noting reviews underway about contractors, real estate, computing infrastructure and various products.Chief Technology Officer Andrew Bosworth, who runs the metaverse-oriented Reality Labs division, told staffers Meta would end its work on Portal smart display devices and on its smartwatches.

Bosworth said the smartwatch unit would focus instead on augmented reality glasses. More than half of the total investment in Reality Labs was going to augmented reality, he added.

 

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