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Meta Cuts Over 1,000 Reality Labs Jobs as It Shifts From VR to AI

The move redirects capital to Meta Compute for a major AI buildout.

Overview

  • Meta confirmed more than 1,000 layoffs in Reality Labs as it reduces investment in VR.
  • The company is closing in-house VR game studios Armature, Sanzaru and Twisted Pixel, and putting the Supernatural fitness app into maintenance with no new content.
  • AR and wearable initiatives, including Ray‑Ban smart glasses, are largely protected within Reality Labs.
  • Meta created a Meta Compute unit to centralize AI infrastructure under Santosh Janardhan with Daniel Gross, and it has recruited Dina Powell McCormick as president and vice chair.
  • To power large-scale AI, Meta is expanding data centers and has signed 20‑year deals to buy electricity from three Vistra nuclear plants, while investors weigh guidance of up to $72 billion in 2025 spending after Reality Labs’ heavy losses.