Meta Reality Labs layoffs are underway, with multiple reports saying the company is cutting more than 1,000 jobs as it redirects resources from virtual reality and metaverse work toward AI wearables and phone features.
The job cuts are expected to affect about 10% of Reality Labs, according to reports that cite internal communications from Meta Chief Technology Officer Andrew Bosworth.
Cuts begin inside Reality Labs
Meta started notifying affected employees beginning Tuesday morning, according to reports describing an internal post from Bosworth.
Several reports put the layoffs at more than 1,000 positions, with the cuts concentrated inside Reality Labs, the division tied to Meta’s hardware and metaverse-related efforts.
Reality Labs is described as having about 15,000 employees, and the layoffs are expected to hit roughly 10% of that group.
Different estimates for total layoffs
CNBC reported—citing a New York Times report that CNBC said it confirmed—that the layoffs will eliminate over 1,000 jobs and affect roughly 10% of the hardware division responsible for Quest VR headsets and Horizon Worlds.
Bloomberg also reported that Meta is beginning to cut more than 1,000 jobs from Reality Labs, with notifications starting Tuesday morning.
Other coverage has pointed to a higher possible number, with the New York Times reporting that Meta planned cuts of about 10% in Reality Labs but that the actual cuts could exceed 10%.
A separate report described the situation as “nearly 1500” employees being cut, while also linking the move to a shift toward AI and noting talk of an all-hands meeting.
Shift from VR to mobile and wearables
In an internal memo described by one report, Bosworth said Meta is shifting its metaverse efforts to focus more on mobile devices, pointing to a larger potential user base and faster growth.
The same report said Bosworth also wrote that Meta planned to scale back virtual reality investments to make the business more sustainable and that VR would operate as a leaner, flatter organization with a more focused roadmap.
The New York Times also reported that Meta planned to redirect money from virtual reality work to its wearables division, which makes smart glasses and wristband computing devices.
Studio closures and product changes
CNBC reported that Meta is closing several studios working on VR projects, naming Armature, Tw Pixel, Sanzaru, and a technical group called Oculus Studios Central Technology.
CNBC also reported additional job cuts at other studios, including Ouro Interactive, which it said Meta launched in 2023 to develop first-party content for Horizon Worlds.
The same CNBC report said Supernatural, a VR fitness app Meta acquired for $400 million in 2023, was being put into “maintenance mode,” meaning it would run with a minimal team and would not get new updates.
AI push tied to broader spending plans
CNBC described the layoffs as part of Meta reducing its metaverse ambitions while stepping up investment in artificial intelligence, including what it said was a $14.3 billion commitment in June tied to recruiting Scale AI founder Alexandr Wang to lead AI strategy alongside other hires.
CNBC also reported that in October, Meta moved Vishal Shah—who led metaverse efforts for four years—into a role as vice president of AI products.
Another report said Meta raised its projected 2025 capital expenditures to $70 billion to $72 billion and forecast significantly larger dollar growth in 2026.
