Meta Starts Layoffs as It Prioritises from Metaverse to AI Devices

Written by: Team Angel OneUpdated on: 15 Jan 2026, 2:54 pm IST

Meta cuts 1,000+ jobs in Reality Labs, reallocating resources from VR to AI wearables and phone features.

Meta is undergoing significant restructuring within its Reality Labs division, resulting in over 1,000 job cuts, as per Bloomberg. This move aligns with the company's strategic shift from virtual reality to artificial intelligence-focused wearables and mobile features.

Job Cuts in Reality Labs

The job reductions at Reality Labs are expected to impact approximately 10% of its workforce, which totals around 15,000 employees. Notifications to affected staff began on a Tuesday morning, as communicated by CTO Andrew Bosworth in an internal message.

These job cuts are part of Meta's broader strategy to reallocate resources from its VR and metaverse projects towards AI devices and features. The company aims to invest savings from these reductions into the growth of AI wearables.

Shift in Focus to AI Wearables

Meta's decision to pivot its focus is driven by a desire to make its business more sustainable. The company is pulling back on some VR investments to concentrate on mobile devices and AI-powered wearables. This shift reflects a change in product emphasis, moving away from fully immersive VR experiences.

Impact on VR and Metaverse Projects

The restructuring largely affects teams involved in VR products and metaverse-related work within Reality Labs. By reallocating resources, Meta aims to balance its heavy investment in AI with the need to control spending within Reality Labs.

Conclusion

Meta's recent job cuts in Reality Labs highlight a strategic shift from VR to AI-focused technologies. The company is reallocating resources to prioritise AI wearables and mobile features, aiming for a more sustainable business model.

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Published on: Jan 15, 2026, 9:24 AM IST

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