Meta is reportedly preparing to cut thousands of jobs in its Reality Labs division, as the company reshapes its priorities and increases focus on artificial intelligence. According to a report, the layoffs could impact up to 10 percent of the division’s total workforce of 15,000 employees.
The move is said to be driven by multiple factors, including heavy operational losses and a strategic shift toward AI. Reality Labs has been under pressure due to the high costs linked to developing and manufacturing augmented reality and virtual reality devices under the Meta AI Glasses and Quest brands.
During Meta’s earnings call for the third quarter of 2025, the company disclosed that Reality Labs recorded operating losses of $4.4 billion, or roughly Rs. 37,000 crore. These losses were largely attributed to rising expenses tied to AR and VR product development and production.
Earlier, another report stated that the Mark Zuckerberg-led company was planning to reduce the division’s 2026 budget by as much as 30 percent. The primary reason cited was Meta’s growing emphasis on AI and its newly formed Superintelligence Labs. This raised questions about whether the company is scaling back its long-term metaverse ambitions. At present, it remains unclear how this may affect the development and launch timelines of future AR and VR wearables.
Separately, a report last week claimed that Meta’s Chief Technology Officer and Head of Reality Labs, Andrew Bosworth, had called for an all-hands meeting this week. He reportedly asked employees to attend the meeting in person and described it as the “most important” meeting of the year.
Now, according to a publication citing unnamed sources familiar with the matter, Meta is planning to lay off as many as 1,500 employees from Reality Labs. The job cuts are expected to largely affect teams working on metaverse-related projects. The all-hands meeting is believed to be linked to this development, as the company has not yet made a public announcement on the layoffs.
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