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5h ago

Meta Poised to Cut About 10% of Reality Labs as AI Takes Priority

The planned cuts track a pivot toward AI investment following steep Reality Labs losses.

Meta is said to fire 1,500 employees from its Reality Labs unit
A bicyclist rides past a Meta sign outside of the company’s headquarters in Menlo Park on March 7, 2023. 
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Mark Zuckerberg of Meta. The Bay Area tech company is preparing to lay off hundreds of employees in its Reality Labs division this week, as it shifts resources away from the metaverse and toward artificial intelligence, according to a report.

Overview

  • Multiple reports say roughly 1,500 of about 15,000 Reality Labs roles could be eliminated this week, with an announcement possible Tuesday.
  • Teams building VR headsets and Horizon Worlds are expected to be hit hardest, and one report said reductions could exceed 10% of the unit.
  • Augmented‑reality and wearables groups, including Ray‑Ban smart glasses efforts, are largely expected to be spared.
  • CTO Andrew Bosworth called a division‑wide meeting for Wednesday, describing it as the year’s “most important” and urging in‑person attendance.
  • The move aligns with Meta’s renewed AI push, including major data‑center expansion under Meta Compute and increased research funding, though the company has not publicly detailed the layoffs.