Meta Lays off VR Staff to Focus on AI

Meta has started reducing jobs in its Reality Labs division as it shifts its strategic priorities away from building out virtual worlds toward AI and smart devices, Bloomberg is reporting.

The move marks a significant change for the unit that has been central to CEO Mark Zuckerberg’s long-term vision but has struggled to produce profitable results.

Reality Labs employs roughly 15,000 people and is responsible for Meta’s augmented and virtual reality projects. These include mixed reality headsets such as Meta Quest, social metaverse platforms, and wearable products like the Ray-Ban smart glasses developed in partnership with EssilorLuxottica.

Although some hardware efforts like the smart glasses have gained positive attention, many of the metaverse initiatives have failed to attract broad consumer interest. Reality Labs has also been a heavy financial burden, with losses totaling tens of billions of dollars since its creation.

Meta has begun cutting more than 1,000 jobs within Reality Labs, representing about 10% of the division’s workforce. Some reports suggest the total could reach around 1,500 positions. These layoffs are expected to hit teams working on virtual reality and metaverse software and hardware the hardest, while groups focused on AI-powered wearables and other emerging tech may face fewer reductions.

Internal communications indicate that executive leadership is preparing staff for the transformation. Meta’s chief technology officer has called for important all-hands meetings in Reality Labs.

Although Meta is trimming its metaverse ambitions, the company is not fully abandoning the idea. Instead, it plans to integrate elements of virtual and augmented reality into more mainstream platforms such as mobile devices and AI systems.