In Meta’s first biggest layoff of 2026, more than 1000 employees at the company’s Reality Labs division were laid off, reported Bloomberg. The mass layoff reportedly came after the company decided to shift its focus from Metaverse to AI devices.
Employees affected by the mass layoff were notified starting Tuesday morning, reported the outlet, citing an internal post by Meta Chief Technology Officer Andrew Bosworth.
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The cuts are expected to impact 10% of the total workforce of Reality Labs. The division has about 15,000 employees.
Why the layoffs?
“We said last month that we were shifting some of our investment from metaverse toward wearables,” a company spokesperson told the outlet. “This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”
What is Reality Labs division?
According to Meta, the division “brings together a world-class team of researchers, developers, and engineers to build the future of connection within virtual and augmented reality.” It deals with Meta’s hardware and other futuristic product efforts. However, it has lost more than $70 billion since its inception in 2021.
What will happen to Metaverse?
The layoffs came as Mark Zuckerberg’s company shifted its focus from Metaverse to AI devices. The costly endeavour, Metaverse, will not cease to exist, and the company will continue to develop it. However, it will reportedly put more focus on mobile phones rather than fully immersive VR headsets.
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“With the larger potential user base and the fastest growth rate today, we are shifting teams and resources almost exclusively to mobile to continue to accelerate adoption there,” said Bosworth.