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Meta Cuts About 1,500 Reality Labs Jobs, Shuts First-Party VR Studios in Pivot to AI Wearables

Years of steep Reality Labs losses are pushing Meta to redirect spending from metaverse titles to AI wearables.

Overview

  • Roughly 1,500 roles, about 10% of Reality Labs, were eliminated as Meta restructured its VR unit, according to multiple reports.
  • Meta closed several internally owned VR game studios, while Horizon Worlds continues to operate with reduced support, per reporting that cites IGN.
  • A Meta spokesman confirmed the shift of investment away from metaverse projects toward wearables and related AI efforts.
  • Oculus founder Palmer Luckey said most cuts hit first-party content teams and argued the change could help third-party developers, adding Meta still has the largest VR workforce.
  • Meta paused some international shipments of its AI smart glasses due to inventory issues, and Bloomberg reported executives discussed scaling production to as many as 20–30 million units if demand warrants.