Meta to lay off 1,500 employees from Reality Labs team
What's the story
Meta is reportedly planning to lay off around 10% of its Reality Labs division, a move that will affect some 1,500 employees. The announcement is expected as early as Tuesday, according to a New York Times report. The layoffs will primarily impact teams working on virtual reality headsets and Horizon Worlds, Meta's VR-based social network.
Financial impact
Reality Labs: A costly venture for Meta
Since its inception, Reality Labs has been a major financial burden for Meta, with losses exceeding $70 billion since 2020. The division has seen multiple rounds of layoffs as the company shifts its focus and spending toward artificial intelligence (AI). Andrew Bosworth, Meta's Chief Technology Officer and head of Reality Labs, had previously described 2025 as "the most critical" year of his tenure in a memo last year.
Upcoming meeting
Bosworth calls important Reality Labs meeting
Ahead of the layoffs, Bosworth has called an important division-wide meeting for Wednesday. He has described it as the "most important" of the year and asked employees to attend in person. The move comes as Meta prepares for a major shift in its business strategy, focusing more on AI technology than virtual reality projects.
Strategic pivot
Meta's strategic shift toward AI
The layoffs and upcoming meeting come as Meta also announced a major expansion plan for its data center capacity, dubbed "Meta Compute." The initiative aims to build "tens of gigawatts" of AI compute by the end of the decade. The company also hired Dina Powell McCormick, a former advisor to US presidents George W. Bush and Donald Trump, as its new president and vice chairperson.