Meta Platforms Inc. is set to reduce its workforce in the Reality Labs division by approximately 10% as it pivots its focus toward artificial intelligence (AI). According to a report by The New York Times, insiders indicate that the announcement could occur as early as this Tuesday. Andrew Bosworth, Meta’s Chief Technology Officer overseeing Reality Labs, has scheduled a crucial meeting for Wednesday, urging staff to attend in person.
Reality Labs comprises around 15,000 employees out of Meta’s total workforce of 78,000, suggesting roughly 1,500 positions may be eliminated. Earlier speculations in December had hinted at potential layoffs of up to 30% within Reality Labs.
Established in 2020, Reality Labs focuses on developing Meta’s virtual and augmented reality products, which include the Quest headsets and Horizon Worlds platform. Since its inception, the division has experienced significant financial challenges, recording multibillion-dollar losses annually. Meta has cautioned investors that these losses may intensify as the company pursues extensive investments in emerging immersive technologies. Despite substantial efforts, the anticipated mainstream acceptance of virtual reality and metaverse-related innovations has yet to materialize, reflecting a long-standing challenge in the tech industry.
This workforce reduction aligns with Meta’s strategic shift toward AI initiatives, which encompass AI-driven features across Facebook and Instagram, the development of the open-source Llama large language model, and enhancements to AI infrastructure, including custom chips and expanded data center capabilities.
The planned layoffs follow earlier reductions within Reality Labs, where over 100 employees were let go in April, and 600 staff from the Superintelligence Labs unit were dismissed in October as part of the company’s ongoing efforts to optimize its AI endeavors. These recent layoffs occur amid an industry-wide trend, with nearly 250,000 tech workers reportedly laid off in 2025, including approximately 170,000 positions in the United States.
