Back in 2018, Meta announced the Portal device, which allows quick access to video calling services, the Amazon Alexa digital assistant, smart cameras, and more. However, the market performance in this category never really took off, and we learned in June 2022 that Meta was repositioning the Portal device as enterprise hardware, rather than a product for the average consumer. And five months in, Meta appears to have shifted toward the caliber to eliminate the business altogether.
Reuters reports that Meta has decided to shut down its Portal smart display business and discontinue its smartwatch program. This comes after the company launched its largest layoff program this week, affecting 11,000 employees – about 13 percent of its workforce.
Given the layoffs and the ongoing recession, it’s not surprising to see Meta reduce spending and efforts on products that don’t make much (if any) profit. CEO Mark Zuckerberg previously emphasized that the company would focus on “high-priority growth areas” such as the metaverse, its AI discovery business and its advertising platform.
It’s clear that Portal devices don’t make the cut when it comes to capital expenditures, and Meta’s smartwatch has been rumored for a long time, but there’s no word on it. Little is known about this wearable device, but given that Meta is also winding down its investment in this area, it seems we will see even less information about it.
We heard similar news about the closure of the smart business in June, and with the latest news seemingly just a confirmation of previous reports, it wouldn’t be surprising to find more projects on the chopping block next.
