Meta is reportedly set to lay off 10% of its Reality Labs team this week, primarily affecting the metaverse division, as the company pivots its focus toward artificial intelligence (AI) development. Reality Labs, which comprises around 15,000 employees, has faced declining interest in its VR offerings, prompting the restructuring.
Andrew Bosworth, head of Reality Labs, has called an “urgent” in-person meeting with the team, signaling the scale of the changes. Reports indicate that while Meta’s Ray-Ban smart glasses have seen strong sales, demand for VR headsets has dropped, making the metaverse division increasingly unprofitable. Earlier, Meta had also announced plans to cut metaverse costs by nearly 30%.
Meta’s growing emphasis on AI is reflected in the creation of its Meta Superintelligence team in 2025, which recruited top AI talent from competitors. The company also revealed last November that AI would play a central role in employee performance evaluations starting in 2026. This move has sparked debate, as research from Hong Kong Polytechnic University and Peking University highlights potential gender biases in AI-based assessments, showing women’s contributions being rated lower than men’s when using AI for similar tasks.
The Reality Labs layoffs underline Meta’s strategic pivot from the metaverse toward AI, reshaping its workforce and future priorities.
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