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3h ago

Meta Cuts About 10% of Reality Labs, Shifts Focus to AI Devices

The move reflects a pivot to mobile-first experiences following years of costly metaverse investment.

Meta is said to fire 1,500 employees from its Reality Labs unit
Meta will focus more on wearables going forward.
An aerial view of Meta’s headquarters on Jan. 29, 2025, in Menlo Park, Calif.
A bicyclist rides past a Meta sign outside of the company’s headquarters in Menlo Park on March 7, 2023. 

Overview

  • Meta began notifying employees on Tuesday of more than 1,000 layoffs in Reality Labs, representing roughly 10% of the division’s approximately 15,000 staff.
  • Teams working on virtual-reality headsets and the Horizon Worlds platform are being hit hardest as the VR group moves to a leaner structure with a narrower roadmap.
  • CTO Andrew Bosworth called an in-person all-hands for Wednesday, describing it internally as the most important meeting of the year.
  • Meta says savings will be reinvested in wearables, with Horizon software and AI creator tools prioritized for mobile rather than fully immersive VR.
  • The reallocation aligns with plans to expand AI compute infrastructure and build on momentum for Ray-Ban smart glasses, as Reality Labs’ losses have surpassed $70 billion since 2020.