Meta Axes 1,000+ Reality Labs Jobs to Double Down on AI Gear
Overview
Meta Platforms is cutting over 1,000 jobs in its Reality Labs division, about 10% of the unit's workforce. The move signals a strategic pivot from costly metaverse investments, which have incurred over $70 billion in losses since 2021, towards developing AI-powered wearables and mobile features. Resources are being redirected to accelerate growth in AI devices, with a reduced but focused approach to virtual reality.
Meta Platforms Inc. is shedding over 1,000 jobs from its Reality Labs division, marking a significant strategic realignment. The tech giant is shifting resources away from virtual reality and its ambitious metaverse vision to prioritize artificial intelligence-powered wearables and mobile features.
Employees were notified starting Tuesday morning about layoffs expected to impact roughly 10% of the Reality Labs group, which employs approximately 15,000 people. This move follows Chief Technology Officer Andrew Bosworth's internal communications detailing the operational shift.
Metaverse Woes
Reality Labs has been a substantial financial drain, accumulating over $70 billion in losses since the beginning of 2021. The highly anticipated metaverse, envisioned as a virtual world for work and play, has failed to gain widespread adoption or generate meaningful revenue, despite heavy investment in VR headsets and digital features.
New Direction
The company's spokesperson confirmed a "shift of investment from metaverse toward wearables," aiming to reinvest savings into accelerating the growth of AI-driven devices this year. Meta is partnering with EssilorLuxottica SA on AI-powered spectacles under brands like Ray-Ban, a project CEO Mark Zuckerberg has cited as performing well.
Future Focus
While Meta will continue some metaverse development, the focus will now predominantly be on mobile platforms. Bosworth noted that teams will "double down on bringing the best Horizon experiences and AI creator tools to mobile," citing its larger potential user base and rapid growth. Virtual reality efforts will continue but with a leaner structure and a more focused roadmap for long-term sustainability.
