Meta is preparing for another major round of layoffs, this time targeting its Reality Labs division, which works on virtual reality, the metaverse, and experimental hardware. Reports suggest the move is part of CEO Mark Zuckerberg’s strategy to shift more resources toward artificial intelligence (AI).
Meta is reportedly planning to lay off around 10 percent of employees in its Reality Labs division. This unit is responsible for virtual reality headsets, metaverse platforms, and experimental hardware projects.
The primary reason behind the decision is Meta’s growing focus on artificial intelligence, with the company reallocating funds and talent away from VR-related initiatives.
Reality Labs currently employs nearly 15,000 people, meaning a 10 percent reduction could result in more than 1,000 job losses. While this number is relatively small compared to Meta’s total workforce of around 78,000 employees, the impact within the metaverse unit is expected to be significant.
Teams working on VR headsets and VR-based social platforms are likely to be the most affected. Some reports also suggest that the scale of layoffs could exceed 10 percent.
The layoffs reflect a major shift in priorities under Meta CEO Mark Zuckerberg. Over the past year, he has pushed senior leadership to cut future budgets so that more resources can be invested in building next-generation AI systems.
Rising competition from companies like OpenAI and Google has made it clear that AI will be the biggest battleground in the coming years. As a result, AI has now become Meta’s top strategic priority.
As part of its AI-driven strategy, Meta is redirecting funds away from traditional VR products toward its wearables business. This includes smart glasses and wrist-worn computing devices equipped with AI features.
Despite billions of dollars in investment, Meta’s VR headsets have struggled to gain widespread adoption among consumers. In contrast, AI-powered smart glasses have received a more positive response.
Meta’s Ray-Ban smart glasses, which feature built-in cameras and an AI assistant, have reportedly sold over 2 million units so far.
There is some relief for teams working on augmented reality (AR) hardware, as they are expected to be largely spared from the layoffs. These teams are developing advanced glasses and wristbands that allow users to control digital menus using voice commands and hand gestures.
Meta has also announced that it is temporarily delaying the international launch of its advanced display smart glasses, citing limited supply and higher-than-expected demand.
Meta has declined to make an official comment on the layoffs. While the company insists that it is not abandoning the metaverse entirely, the signals are clear: Meta’s future appears increasingly AI-driven rather than centered on virtual worlds.