Meta is laying off 10% of the staff in its Reality Labs division, which is central to developing the company’s virtual reality and metaverse products. According to reports, Reality Labs had approximately 15,000 employees, meaning these job cuts could affect over 1,000 people.
In a separate development, the company plans to shut down several studios, including Armature Studio, Twisted Pixel, and Sanzaru. A technical unit known as Oculus Studios Central Technology, which was focused on VR titles, will also be closed.
The company’s Chief Technology Officer and head of Reality Labs, Andrew Bosworth, has called for a critical in-person meeting scheduled for January 14, described as the most important of the year.
These layoffs are reported not to impact employees working on augmented reality projects. Meta maintains significant ambitions for developing AR glasses and controllers, and the financial savings from these cuts are expected to be redirected toward augmented reality development.
This news arrives as Meta continues to shift its strategic focus. The company, which rebranded from Facebook in 2021 to emphasize the metaverse, is now channeling substantial resources into artificial intelligence. This pivot was underscored in October when the company moved metaverse head Vishal Shah to a vice president role overseeing AI products.
Last year, Meta reorganized its AI efforts under a new division called Superintelligence Labs, following the hiring of Alexandr Wang from Scale AI. The company has also aggressively recruited top AI researchers from other labs by offering highly competitive compensation packages.
Meta has not provided an official comment on these reports.