Meta Cuts Around 1,000 Jobs From Reality Labs as Focus Shifts to AI and Wearables

Meta Platforms has laid off roughly 1,000 employees from its Reality Labs division, marking a significant reduction in the unit responsible for virtual reality and metaverse development. The move comes as the company prepares to redirect resources toward AI-powered wearables and mobile features.

Internal Memo Confirms Workforce Reduction

The layoffs were announced Tuesday in an internal memo from Meta Chief Technology Officer Andrew Bosworth, first reported by Bloomberg. With Reality Labs employing an estimated 15,000 people, the cuts represent about 10% of the division’s workforce.

Meta Says Investment Is Shifting Away From the Metaverse

Meta confirmed that the job cuts align with a broader strategy shift. A company spokesperson said Meta is reallocating investment from metaverse initiatives toward wearables, with plans to reinvest cost savings to support growth in that segment during 2026.

First Major Tech Layoffs of 2026

The reductions mark the first major tech-sector layoffs of 2026, following a slowdown in large-scale workforce cuts late last year after an extended period of industry-wide downsizing.

Reality Labs Losses Have Long Pressured Meta

Meta’s commitment to the metaverse has been under scrutiny since late 2022, when the company cut about 11,000 jobs while reaffirming its long-term vision for immersive digital worlds. That decision highlighted growing tension between mounting losses at Reality Labs and investor demands for efficiency.

Weak Adoption Undermined the Metaverse Push

By the end of 2022, Meta’s metaverse strategy appeared increasingly strained by weak user adoption, unclear consumer demand, and the rising financial burden of Reality Labs, especially as interest rates increased and capital conditions tightened.

Tech Layoffs Remain Elevated Despite Recent Slowdown

While Meta’s cuts are notable, they represent a small share of the roughly 154,000 tech jobs eliminated across 2025. Industry researchers attribute the broader wave of layoffs to rapid AI adoption and years of over-hiring across the sector.

Tech Sector Led Layoffs Across Private Industry

Data shows the technology sector led all private industries in job cuts last year, with layoffs rising 15% compared to 2024, even as overall reductions tapered toward the end of 2025.

FAANG Peers Show Mixed Layoff Strategies

Among Meta’s FAANG peers, Amazon recorded the largest workforce reductions, while Google and Microsoft implemented smaller, recurring cuts tied to AI-driven restructuring. Apple largely avoided mass layoffs, and Netflix made limited reductions.

Regulatory Filings and Official Responses Pending

As of Wednesday, California labor records did not yet reflect a formal layoff notice tied to Meta. The company and state regulators have been contacted for comment, and updates are expected if responses are received.