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Meta Begins More Than 1,000 Reality Labs Layoffs in Pivot to AI and Wearables

The company will redirect spending to wearables alongside large-scale AI infrastructure after years of heavy Reality Labs losses.

Overview

  • An internal post from CTO Andrew Bosworth said layoff notices began Tuesday, with roughly 10% of the ~15,000-person division targeted, a move a Meta spokesperson confirmed to reporters.
  • Teams working on VR headsets and the metaverse social platform face the deepest reductions, while augmented‑reality wearables groups are largely spared, according to multiple reports.
  • Bosworth has called an in‑person all‑hands for Wednesday, telling staff in a memo it is the “most important” meeting of the year.
  • Meta says it is shifting investment from the metaverse toward wearables and will reinvest savings to grow that business this year as Horizon software efforts refocus on mobile.
  • The cuts come after Reality Labs racked up more than $70 billion in cumulative losses and as Meta accelerates plans to build large AI compute capacity.