Meta to cut 10% of Reality Labs team as focus shifts to AI

Business Jan 13, 2026

Meta (the company behind Facebook, Instagram, and WhatsApp) plans to let go of about 1,500 people—roughly 10% of its Reality Labs division.
These teams work on VR headsets and Horizon Worlds.
The move is part of a broader restructuring as Meta shifts more focus to AI and future technologies.

Why the cuts?

Reality Labs has lost Meta over $60 billion since 2020.
While these layoffs are just a fraction of Meta's total staff, they're a big hit for the VR group.

"Most important" meeting coming up

CTO Andrew Bosworth called an upcoming all-hands the "most important" of the year—everyone has to show up in person.
He previously warned that 2025 will make or break Reality Labs: it could be visionary or turn into what he called a "legendary misadventure."