Meta begins job cuts, shifts from metaverse to AI devices

Meta Platforms Inc. has started cutting jobs in its Reality Labs division as part of a strategic shift away from its long-term metaverse agenda toward artificial intelligence (AI) products and mobile devices, according to internal communications reviewed by Bloomberg News.

The cuts, expected to affect more than 1,000 employees, roughly 10 percent of Reality Labs’ workforce of about 15,000, were communicated to staff through an internal post from Chief Technology Officer Andrew Bosworth. 

Affected workers began receiving notifications on Tuesday (U.S. time).

Reality Labs is responsible for Meta’s virtual and augmented reality efforts, including hardware such as VR headsets and AI glasses, as well as software for immersive environments. 

The division has produced limited revenue while incurring significant losses since 2021.

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In the internal memo, Bosworth explained the purpose of the restructuring as part of a broader realignment of Meta’s priorities. He noted that the company’s metaverse efforts will now concentrate more on mobile platforms rather than expensive VR headsets and virtual environments.

A Meta spokesperson said, “We said last month that we were shifting some of our investment from metaverse toward wearables. This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”

The changes reflect Meta’s decision to reallocate resources to areas of growing demand, including AI-enabled wearable devices and mobile-first features. The tech company and EssilorLuxottica SA are discussing potentially doubling production capacity for AI-powered smart glasses by the end of this year, people familiar with the matter said. Meta has suggested increasing annual capacity to 20 million units or more by the end of 2026, said the people, asking not to be named because the deliberations are private.

Bosworth said the new focus will see Meta’s metaverse software group, now called Horizon, prioritise experiences and AI creator tools for mobile to reach a wider user base. He noted that this shift aligns with current technology trends and user behaviour. 

Meta leaders have also signaled that while VR and immersive efforts will continue, they will do so within a leaner organisational structure and with a clearer sustainability focus.

The Reality Labs restructuring marks one of the first major waves of job reductions for Meta in 2026, underscoring how the company is adjusting its strategy amid shifting industry priorities toward artificial intelligence and more accessible consumer hardware.