Meta Plans To Cut 10% Of Metaverse Division

Meta is reportedly planning to lay off approximately 10% of its staff, around 1,500 people, from its Reality Labs metaverse division this week, potentially as early as Tuesday. This reduction is part of a broader strategic shift where the tech giant is prioritizing and reallocating funds toward artificial intelligence (AI) development. Reality Labs, which handles VR gear and platforms like Horizon Worlds, has seen significant operational losses, totaling $4.4 billion in Q3 2025 alone, and over $70 billion since its launch in August 2020. The cuts follow earlier reports of Meta potentially slashing 30% from its metaverse budget. Furthermore, some funds from Reality Labs are expected to be moved to the wearables division, focusing on devices like smart glasses and the Meta Neural Band. Despite the pivot away from heavy metaverse investment, CEO Mark Zuckerberg remains bullish on the long-term potential of the metaverse.

(Source：Cointelegraph)