Meta Platforms has begun notifying more than 1,000 employees in its Reality Labs division of layoffs, marking a decisive retreat from the virtual reality and metaverse ambitions that once defined the company's future. The cuts, announced Tuesday morning, represent roughly 10% of the 15,000-person division and will disproportionately impact teams working on VR headsets and Horizon Worlds, Meta's VR-based social network.
Chief Technology Officer Andrew Bosworth informed affected employees via an internal memo reviewed by Bloomberg, with resources being redirected toward AI-powered wearables and smartphone features. The move signals an acknowledgment that Meta's costly metaverse vision—which prompted CEO Mark Zuckerberg to rename the company from Facebook in 2021—has failed to gain mainstream traction.