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2h ago

Meta Begins Reality Labs Layoffs as It Refocuses on AI and Wearables

The move reflects a pivot driven by sustained losses toward AI infrastructure and AR wearables.

Meta is said to fire 1,500 employees from its Reality Labs unit
Meta will focus more on wearables going forward.
A bicyclist rides past a Meta sign outside of the company’s headquarters in Menlo Park on March 7, 2023. 
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Overview

  • Meta started notifying staff on Tuesday of cuts affecting more than 1,000 Reality Labs roles, roughly 10% of the unit, with reports placing the total near 1,500 and a division-wide meeting set for Wednesday.
  • Teams building VR headsets and Horizon Worlds are hit hardest as leadership directs VR to operate leaner and shifts Horizon development toward mobile with AI creator tools.
  • Developers say Meta shut down multiple VR game studios, including Twisted Pixel and Sanzaru Games, indicating first‑party content operations are part of the reductions.
  • Groups working on augmented‑reality wearables, such as Ray‑Ban smart glasses, are largely spared as Meta plans to reinvest savings to expand its wearables lineup.
  • The restructuring aligns with a broader push into AI, including a massive Meta Compute data center buildout and the hiring of Dina Powell McCormick to help steer policy and partnerships.