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Meta Is Set to Cut About 10% of Reality Labs as Focus Shifts to AI

Reports frame the move as a pivot from metaverse projects to AI infrastructure.

Overview

  • Multiple outlets, citing people familiar with the plans, say roughly 1,500 of Reality Labs’ about 15,000 employees could be let go as soon as Tuesday.
  • Teams working on VR headsets and Horizon Worlds are expected to be hit hardest, while groups building AR wearables such as Ray‑Ban smart glasses are largely spared, according to reports.
  • CTO Andrew Bosworth called an in‑person division meeting for Wednesday that he described as the year’s most important, signaling imminent changes.
  • The restructuring follows years of heavy losses at Reality Labs, frequently reported at more than $60–$70 billion since 2020, and recent internal budget reviews.
  • The reported cuts coincide with Meta’s AI push, including its Meta Compute data‑center buildout and a stated shift of some investment from metaverse efforts toward AI glasses, as the company declined to comment on specific headcount figures.