MENLO PARK, Calif. — Meta Platforms Inc. is preparing to cut about 10% of its Reality Labs division — the unit behind its metaverse and virtual reality (VR) work — with reductions expected to be announced or begin as soon as Tuesday. The Meta Reality Labs layoffs would underscore how quickly Meta is redirecting resources toward artificial intelligence after years of heavy spending on VR, Jan. 13, 2026.
Meta Reality Labs layoffs: what the reports say
Reuters, citing a New York Times report, said the reductions would disproportionately hit the metaverse group, including teams tied to VR headsets and VR-based social networking. Reality Labs has about 15,000 employees, making a 10% cut roughly 1,500 jobs, according to Reuters’ report.
The Verge separately reported the company was expected to lay off “hundreds” of people and that the reductions were concentrated on metaverse projects. Bloomberg later reported that Meta had begun the job cuts as it shifts investment toward AI devices, according to Bloomberg.
The reports said Meta Chief Technology Officer Andrew Bosworth, who oversees Reality Labs, called an in-person division meeting for Wednesday. If the Meta Reality Labs layoffs are confirmed, the meeting could clarify which product lines are being prioritized — and which metaverse bets are being scaled back.
Why the AI pivot is squeezing the metaverse budget
Reality Labs has racked up multibillion-dollar annual losses, and Reuters reported the metaverse effort has burned more than $60 billion since 2020. The hit has been easier for Meta to absorb when advertising is strong, but the division has remained a flashpoint as investors push for tighter spending discipline.
In early December, Reuters reported Meta was weighing metaverse budget cuts of up to 30% during annual planning for 2026 — a review that could include layoffs arriving as early as January, according to that earlier Reuters story. The timing helps explain why Meta Reality Labs layoffs are now surfacing in the first weeks of the year.
Reality Labs is broader than VR worlds. The segment includes Quest mixed-reality headsets and Ray-Ban smart glasses made with EssilorLuxottica. Several reports suggested smart-glasses work has shown more traction than metaverse software, and may face fewer reductions than VR social products in the latest round of Meta Reality Labs layoffs.
Continuity: previous trims show a longer pattern
Even before this week’s reports, Reality Labs had been slimming down in pockets. In April 2025, Meta laid off an unspecified number of employees in Oculus Studios, including staff tied to the Supernatural VR fitness title, according to a Reuters account of that restructuring.
Meta has also repeatedly reduced headcount companywide since 2022. An Associated Press report on layoffs that touched WhatsApp, Instagram and Reality Labs cited earlier cuts of 11,000 employees in 2022 and another 10,000 in 2023, according to the AP’s recap.
For now, the Meta Reality Labs layoffs remain based on reports rather than a detailed company announcement. Any confirmation is likely to bring fresh questions about how much of Meta’s original metaverse vision survives — and how far the company will go to fund its next AI push.
