Meta cuts 10% of metaverse team to focus on AI

Meta lays off 10% of metaverse team

Meta, the parent company of platforms like Facebook and Instagram, confirms the layoff of about 10% of its Reality Labs division. This decision, as reported by The New York Times, arises in response to a strategic shift that prioritizes investments in artificial intelligence (AI).

Details on the cuts

Reality Labs, which develops technologies such as the Meta Quest headsets, employs approximately 15,000 people. Thus, the cut would mean the departure of around 1,500 employees. Meta, overall, has a workforce of 78,000.

Since its inception, the Reality Labs division has accumulated an operational loss of over $73 billion. The report highlights that, as early as 2025, Bloomberg had indicated planned cuts in the metaverse team.

Meetings and future planning

• According to internal sources, CTO Andrew Bosworth called an important meeting for next Wednesday (14);
• CEO Mark Zuckerberg instructed executives to cut costs, focusing on AI research;
• Meta increased the budget for 2026 for laboratories aiming to develop a "super AI";
• Despite the cuts, Meta remains committed to developing the concept of the metaverse.

Impact on Ray-Ban Meta glasses

The Reality Labs division is also responsible for the smart glasses in partnership with Ray-Ban. This product, which includes a camera and a personal assistant, is not expected to be significantly affected by the cuts, given its success. More than 2 million units have been sold in the last two years, leading Meta to adjust its distribution to meet growing demand.

Future of Meta and the metaverse

With the recent shift towards artificial intelligence, the future of the metaverse at Meta remains uncertain. However, the company shows determination to continue its efforts in this area, even amid challenges and market resistance.