Meta Plans Job Cuts in Reality Labs Amid Strategic Shift to AI
Meta Platforms is preparing to cut around 10 per cent of jobs in its Reality Labs division, the unit responsible for the company’s virtual reality and metaverse products, according to a report by Bloomberg.
The layoffs are expected to be announced this week and will affect a division that has employed thousands of workers and absorbed billions of dollars in investment over the years.
Reality Labs and Meta’s Metaverse Ambitions
Reality Labs has been central to Meta’s long-term vision of immersive digital worlds, housing development of virtual reality hardware, social VR platforms, and metaverse experiences.
Despite continuous improvements in VR devices and virtual social environments, the division has struggled to turn these products into mass-market successes, with consumer adoption remaining limited and costs staying high.
Resources Shift Toward Artificial Intelligence
The planned job cuts signal a strategic reallocation of resources, with Meta moving investment away from parts of its VR and metaverse operations and directing more capital toward artificial intelligence.
The decision follows internal budget reviews that began late last year. Meta CEO Mark Zuckerberg reportedly asked Reality Labs leadership to identify areas where spending could be reduced, including slowing work on certain VR and metaverse products.
While Meta continues to describe the metaverse as a long-term vision, AI has become the company’s immediate strategic priority.
AI Now at the Centre of Meta’s Growth Strategy
Meta is currently investing heavily in:
- AI research and development
- Large-scale data centres
- Advanced computing infrastructure
- Teams focused on next-generation AI systems
This pivot reflects changing user behaviour, as AI-powered tools, assistants, and smart devices are seeing faster adoption compared to virtual reality products, which have yet to become part of everyday digital life.
A Broader Trend Across Big Tech
Meta’s move mirrors a wider pattern across the technology industry, where companies are cutting costs in experimental or slower-growth units while increasing spending on AI, automation, and cloud infrastructure.
In 2025, both Microsoft and Amazon carried out significant layoffs as they restructured around AI-first strategies. Meta itself has previously reduced headcount across multiple teams in response to rising costs and shifting market conditions.
Reality Labs Faces Tighter Oversight
Although Meta has not announced plans to shut down Reality Labs, the job cuts indicate a more disciplined approach to funding long-term bets. Teams working on virtual reality and metaverse projects now face closer scrutiny, while AI-led products increasingly define Meta’s near- and medium-term growth outlook.
The latest restructuring underscores how quickly priorities are changing across Big Tech, as artificial intelligence moves from an experimental technology to the core driver of competitiveness and investment.
