Meta reportedly plans to cut 10% of Reality Labs staff amid strategic shift

Meta is preparing to lay off roughly 10% of employees in its Reality Labs division, according to multiple reports, marking another significant pullback from the unit that has led the company’s virtual reality and metaverse efforts.

Reality Labs employs about 15,000 people, meaning the cuts could affect more than 1,000 workers, according to The New York Times. The division has been responsible for Meta’s VR hardware, software, and immersive experiences — areas the company has invested billions of dollars into over the past several years.

Other outlets have reported that the layoffs may coincide with broader restructuring. CNBC reported that Meta plans to shut down several VR-focused studios, including Armature Studio, Twisted Pixel, and Sanzaru, as well as a technical group, Oculus Studios Central Technology, which supported VR game development. Around the same time, Business Insider reported that Meta CTO and Reality Labs head Andrew Bosworth told employees an upcoming January 14 meeting would be the most crucial in-person gathering of the year, fueling speculation about significant changes.

According to The New York Times, the job cuts are not expected to affect teams working on augmented reality. Meta reportedly sees AR — brilliant glasses and new input devices — as a more promising long-term opportunity. Savings from the Reality Labs layoffs are expected to be redirected toward those efforts.

The reported cuts reflect how Meta’s priorities have shifted since it rebranded itself around the metaverse in 2021. While the company continues to invest in immersive technology, its most significant focus over the past year has been on artificial intelligence. In late 2024, Meta moved metaverse executive Vishal Shah into a leadership role overseeing AI products and reorganised its research efforts under new Superintelligence Labs. The company has also made high-profile hires and reportedly offered aggressive compensation packages to attract AI researchers from competing labs.

Meta has not publicly commented on the reported layoffs.