Meta Shifts Focus from VR to AI After Cutting 1,000 Reality Labs Jobs

Meta has laid off approximately 1,000 employees from its Reality Labs division, marking a 10% reduction in the unit's workforce. The cuts disproportionately affected teams working on Quest VR headsets and Horizon Worlds, Meta's social VR platform. Some internal production studios were shuttered entirely.

The MOVE signals a strategic pivot toward wearable technology like Ray-Ban Meta smart glasses and artificial intelligence initiatives. This represents a stark departure from Meta's previous emphasis on the metaverse, which has consumed over $70 billion in losses since late 2020. "I can see how it feels like a VR winter," remarked Jessica Young, an independent Horizon Worlds creator.

Meta's retreat from virtual reality comes nearly a decade after its $2 billion acquisition of Oculus ignited the modern VR market. The company's 2025 Connect conference made clear its reoriented priorities, though executives declined to elaborate beyond initial statements.