TL;DR
Meta is planning layoffs in its Reality Labs division, with roughly 10% of that team's roles expected to be cut and reductions concentrated on metaverse projects. Reports link the move to the company’s shifting priorities toward AI, and leadership has called a high-priority staff meeting this week.
What happened
Reports indicate Meta will reduce headcount within Reality Labs by about 10 percent, with job losses focused primarily on teams working on metaverse initiatives. The staffing changes were described as a consequence of the company redirecting attention and resources toward artificial intelligence work. Reality Labs, the Meta unit responsible for virtual and augmented reality, employs about 15,000 people; company leadership in that area has scheduled a Wednesday meeting that was framed as particularly important and for which in-person attendance was encouraged. The staffing moves follow a recent report that Meta planned to shrink its metaverse budget by roughly 30 percent. Observers have noted that other products from Meta’s hardware portfolio, including its Ray-Ban smart glasses, have drawn more attention than its VR headsets, and the broader metaverse effort has struggled to gain widespread traction. Meta declined to comment on the reports.
Why it matters
- Cuts could signal a larger strategic shift at Meta from metaverse investments toward AI priorities.
- Reductions in Reality Labs may slow development or change roadmaps for VR and metaverse projects.
- Job losses at a major hardware and research division can affect partner developers and the broader VR ecosystem.
- Public perception of the metaverse effort may worsen if resources and leadership attention move elsewhere.
Key facts
- The New York Times reported expected layoffs concentrated on metaverse employees within Reality Labs.
- The reductions are described as roughly 10 percent of Reality Labs staff.
- Reality Labs is said to employ about 15,000 people.
- Meta’s chief technology officer, Andrew Bosworth, called a Wednesday meeting and urged in-person attendance.
- Bloomberg reported last month that Meta planned to cut its metaverse budget by approximately 30 percent.
- The Ray-Ban smart glasses have recently drawn more attention than the company’s VR headsets, according to reporting.
- Observers and users have characterized the broader metaverse social platform as struggling to gain traction.
- Meta declined to comment to reporters about the layoffs.
What to watch next
- Outcome and any official announcements from the Wednesday meeting called by Reality Labs leadership — not confirmed in the source.
- Exact headcount and which teams or roles are affected by the cuts — not confirmed in the source.
- How Meta reallocates Reality Labs budget between AI, AR, and VR projects going forward — not confirmed in the source.
Quick glossary
- Reality Labs: Meta’s division focused on virtual reality (VR), augmented reality (AR), hardware and related research and development.
- Metaverse: A broad term for immersive virtual spaces and environments where users can interact via avatars and digital content.
- Ray-Ban smart glasses: A consumer wearable developed in partnership with Meta that blends eyewear with connected features; cited as drawing attention within the company’s hardware lineup.
- Artificial intelligence (AI): Computer systems and software designed to perform tasks that typically require human intelligence, such as learning, reasoning, and pattern recognition.
- Chief Technology Officer (CTO): A senior executive responsible for overseeing a company’s technological direction and research priorities.
Reader FAQ
How many Reality Labs employees will be laid off?
Reports say about 10 percent of Reality Labs staff are expected to be cut; the company did not provide an official figure.
Why are the layoffs happening?
Reporting links the reductions to a shift in resources and focus toward AI initiatives and prior plans to reduce metaverse budget.
Will Meta confirm the layoffs or provide details?
Meta declined to comment in the reporting; further confirmation was not provided in the source.
When will the layoffs take place?
The reporting indicates the cuts were expected this week and notes a Wednesday meeting called by Reality Labs leadership.
NEWS TECH META Meta plans to lay off hundreds of metaverse employees this week After reports of budget cuts, the Reality Labs team is now facing job cuts, too. by…
Sources
- Meta plans to lay off hundreds of metaverse employees this week
- Report: Meta plans to cut around 10% of Reality Labs …
- Meta plans to cut about 10% of employees in Reality Labs …
- Meta Slashes Metaverse Budget by 30% After $70B Loss
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