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Meta Cuts About 1,500 Reality Labs Jobs as It Shifts Spending to AI Wearables

The company says savings from the cuts will be reinvested to grow wearables this year.

Overview

  • The layoffs affect roughly 10% of Reality Labs’ staff, or about 1,500 roles, according to reports citing internal plans.
  • An internal memo from CTO Andrew Bosworth outlines a pivot toward AI-powered wearables and mobile features and a scaling of VR investment to a more sustainable level.
  • A Meta spokesperson said the savings from restructuring will be directed to support the expansion of wearables in 2026.
  • Reports say Meta shuttered first‑party VR studios including Armature, Twisted Pixel and Sanzaru, and moved the Supernatural VR fitness app into maintenance mode.
  • Meta maintains it is not exiting VR, with a company developer advocate highlighting ongoing VR programs and education, against a backdrop of reported Reality Labs losses exceeding $70 billion since 2021.