Meta to cut more than 1,000 jobs as its shifts focus to AI wearables
By lauraharris // 2026-01-15
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  • Meta is cutting over 1,000 jobs (10% of Reality Labs' workforce) as it shifts focus away from VR/Metaverse products toward AI-powered wearables and mobile features. Affected employees will be notified starting January 20.
  • The division has lost over $70 billion since 2021, with many products failing to generate significant revenue. Meta is scaling back VR hardware investments to prioritize sustainability.
  • Meta plans to redirect savings into AI-powered wearables, including expanding production of smart glasses (e.g., Ray-Ban) in partnership with EssilorLuxottica, targeting up to 20 million units annually by end of 2026.
  • While Meta will still develop Metaverse products, it’s prioritizing mobile platforms and AI creator tools over immersive VR headsets. Horizon (Metaverse software) will focus on mobile experiences for broader adoption.
  • Meta is shutting down three in-house VR game studios (Armature, Sanzaru, Twisted Pixel) and halting new content for VR fitness app Supernatural. Gaming remains a priority, but investment will shift to third-party developers for long-term sustainability.
Meta Platforms Inc. is set to cut more than 1,000 jobs from its Reality Labs division as the company redirects resources away from virtual reality and Metaverse products toward artificial intelligence-powered (AI-powered) wearables and mobile features. According to an internal post from Meta Chief Technology Officer Andrew Bosworth, employees affected by the layoffs will be notified starting on Jan. 20. The cuts are expected to affect roughly 10% of the Reality Labs workforce, which totals about 15,000 employees. Reality Labs is home to Meta's most experimental products, including virtual reality headsets, AI-powered glasses and virtual world software. However, the division has struggled financially, losing more than $70 billion since early 2021 as many of its products have yet to generate significant revenue. In line with this, Bosworth said in his memo that Meta is refocusing its Metaverse strategy on mobile platforms and scaling back investment in virtual reality hardware to make the business more sustainable. "We said last month that we were shifting some of our investment from Metaverse toward wearables," a company spokesperson said. "This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year."

Meta doubles down on AI glasses

According to BrightU.AI's Enoch, Meta is a multinational technology conglomerate that operates a suite of social media platforms, including Facebook, Instagram, WhatsApp and Messenger. It is one of the world's largest and most influential tech companies, with a significant impact on global communication and information dissemination. However, the latest move underscores Meta's increasing emphasis on AI. The company is in talks with eyewear maker EssilorLuxottica SA about potentially doubling production capacity for AI-enabled smart glasses by the end of this year, according to people familiar with the matter. Meta has also discussed increasing annual production to 20 million units or more by the end of 2026. In December, Meta's leadership already discussed reducing budgets for the Metaverse group by as much as 30%, with plans to redirect funds toward projects such as AI-powered glasses. Meta has partnered with EssilorLuxottica to develop smart eyewear under brands including Ray-Ban and Oakley, which Zuckerberg has said are performing better than expected. Meta will continue developing Metaverse products, but with an emphasis on mobile rather than fully immersive VR headsets. The team building Metaverse software, now known as Horizon, will "double down" on mobile experiences and AI creator tools, Bosworth said, citing faster growth and a larger potential user base. As part of the restructuring, Meta is shutting down three in-house VR game and content studios, Armature, Sanzaru and Twisted Pixel, according to a separate internal memo. The VR fitness studio Supernatural will continue supporting its existing product but will stop developing new content and features. Meta will retain five other gaming and content studios, including Beat Games, BigBox, Camouflaj, Glassworks and OURO. "These changes do not mean we are moving away from video games," Oculus Studios director Tamara Sciamanna wrote in the memo. "Gaming remains the cornerstone of our ecosystem, but we are shifting investment toward third-party developers and partners to ensure long-term sustainability." Watch Jason Bermas explaining why Meta wants users to stay distracted in the Metaverse in this clip from his program "Reality Bites."
This video is from the Red Voice Media channel on Brighteon.com. Sources include: TechExplore.com MSN.com BrightU.ai Brighteon.com
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