Meta to cut about 10% of Reality Labs workforce, report says

Meta is preparing to reduce its workforce in the Reality Labs division, with about one in ten roles expected to be cut, according to a report by The New York Times. The division, which employs around 15,000 people, develops Meta’s metaverse platforms as well as its virtual, mixed and augmented reality hardware.

The report said the reductions could be announced as early as this week and are likely to fall most heavily on teams working on virtual reality headsets and virtual social environments. Reality Labs was set up to build what Meta describes as the next phase of digital interaction, centred on immersive online worlds.

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The unit has been a major investment priority for Meta chief executive Mark Zuckerberg, but it has also generated large losses. Since 2020, Reality Labs has reportedly absorbed tens of billions of dollars in spending, putting pressure on the company to reassess its scale and direction.

In addition to metaverse platforms, Reality Labs is responsible for products such as the Quest mixed-reality headsets, Ray-Ban smart glasses developed with EssilorLuxottica, and Meta’s augmented reality eyewear. While the company has struggled to gain widespread adoption for its virtual worlds, its smart glasses have seen more traction compared to similar early offerings from rivals such as Google and Apple.

Meta’s chief technology officer Andrew Bosworth, who leads the Reality Labs division, has called an in-person staff meeting later this week, according to the report. The company has not publicly commented on the planned cuts.

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The potential layoffs come as Meta works to strengthen its position in artificial intelligence, an area that has become increasingly competitive in Silicon Valley following mixed responses to its latest Llama AI model.