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1h ago

Meta Said to Plan 10%–15% Job Cuts at Reality Labs as AI Takes Priority

The reported downsizing reflects a resource shift toward AI after years of steep Reality Labs losses.

A bicyclist rides past a Meta sign outside of the company’s headquarters in Menlo Park on March 7, 2023. 
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.
FILE — Michael Abrash, chief scientist of Reality Labs at Meta, speaks during a presentation at Meta Connect in Menlo Park, Calif., Sept. 18, 2025. Meta plans to cut around 10 percent of the employees in its Reality Labs division who work on products including the metaverse, according to three people with knowledge of the discussions, as the company shifts priorities to build next-generation artificial intelligence. (Jason Henry/The New York Times)
Meta CTO Andrew Bosworth, who heads the Reality Labs unit.

Overview

  • Reports from The New York Times, cited by Reuters and Business Insider, say Meta aims to reduce Reality Labs staff by roughly 10% to 15% of about 15,000 employees.
  • Teams working on VR headsets and Horizon Worlds are expected to be hit disproportionately, according to people familiar with the plans.
  • An announcement could come as soon as Tuesday, with CTO Andrew Bosworth convening a Reality Labs meeting on Wednesday that he urged staff to attend in person.
  • Meta declined to comment on the reported cuts.
  • Coverage notes Reality Labs has accumulated losses estimated between about $60 billion and more than $70 billion since 2020, with the shift linked to a bigger push into AI following weak reception for Llama 4.