Meta Lays Off 1,500 Employees as Reality Labs Restructures

Employees leaving Meta headquarters after Reality Labs restructuring and workforce reduction

Meta Platforms has carried out a fresh round of job cuts within its Reality Labs division, impacting teams focused on virtual reality and augmented reality projects. The move forms part of an internal restructuring aimed at realigning resources as the company reassesses priorities.

Reality Labs has been central to Meta’s metaverse ambitions, overseeing VR headsets, AR technologies, and related software. However, the unit has reported repeated multibillion dollar losses in recent years, placing pressure on leadership to tighten costs while maintaining long term bets.

Meta confirmed the layoffs but did not disclose how many roles it eliminated across individual teams. People familiar with the matter said the changes affected several VR related projects rather than a single product group.

Key Details from the Restructuring

  • Job cuts were limited to the Reality Labs division
  • VR focused teams were among those affected
  • Layoffs followed an internal reorganization, not a full strategy exit
  • Impacted employees will receive transition and support assistance

While scaling back parts of Reality Labs, Meta continues to reposition itself around artificial intelligence. Chief executive Mark Zuckerberg has repeatedly identified AI as the company’s top strategic priority, especially for products across social media, advertising and creator tools.

As Meta tightens costs inside Reality Labs, the company is simultaneously accelerating large scale investments in artificial intelligence infrastructure. Chief executive Mark Zuckerberg has framed AI as the foundation for Meta’s next growth phase, spanning content discovery, advertising efficiency and creator monetization. Meta’s strategic reallocation of resources explains why the company is shifting capital and talent away from loss-making metaverse units toward initiatives such as its expanding AI compute ambitions, outlined in the Meta Compute AI infrastructure initiative, which supports increasingly advanced models and long-term platform scale.

Reality Labs Snapshot

Area Current status
Financial performance Ongoing annual losses
Core focus VR, AR, metaverse platforms
Strategic direction Selective investment, tighter cost control
Company priority Artificial intelligence growth

Meta said it still believes in the long-term potential of VR and AR, even as it reduces headcount to better balance innovation with financial discipline.

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