Meta cuts 1,000+ jobs at metaverse unit amid wearables push
What's the story
Meta is set to lay off over 1,000 employees from its Reality Labs division. The layoffs will mostly affect teams working on virtual reality products. Meta spokesperson Tracy Clayton confirmed the layoffs in a statement: "We said last month that we were shifting some of our investment from Metaverse toward Wearables." "This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year."
Impact
Reality Labs division to face significant job cuts
The Reality Labs division, which employs around 15,000 people, will see a roughly 10% workforce reduction. This means more than 1,000 employees will be laid off. While this is a small fraction of Meta's total workforce of about 78,000 employees, it will have a major impact on the metaverse-focused unit. Teams working on virtual reality headsets and Meta's VR-based social platforms are likely to be the hardest hit by these layoffs.
Strategic pivot
Meta's shift in priorities under CEO Mark Zuckerberg
The decision to lay off employees is part of a larger strategic shift under CEO Mark Zuckerberg. Over the past year, Zuckerberg has asked senior leaders to cut future budgets so that Meta can invest more in building next-gen AI systems. The company is facing increasing competition from rivals like OpenAI and Google, and Zuckerberg has made it clear that AI is now Meta's top priority.
New focus
Meta's pivot toward wearables and AI-powered devices
As part of its strategic pivot, Meta is also reallocating funds from traditional virtual reality products to its wearables business. This includes smart glasses and wrist-based computing devices that combine hardware with AI-driven features. Despite billions of dollars in investment, Meta's VR headsets have struggled to gain mass adoption. However, its AI-powered smart glasses have been more successful, with the Ray-Ban smart glasses selling over two million units so far.
Exemption
Augmented reality hardware teams largely unaffected by layoffs
Notably, teams working on augmented reality hardware are likely to be spared from the layoffs. These groups are developing glasses and wristbands that let users control digital menus with their voice or hand gestures. Meta recently announced it is delaying the global launch of its more advanced display-equipped smart glasses due to limited supply and unexpectedly strong demand.