Mark Zuckerberg's Meta to Lay Off 10% of 'Reality Labs' Workforce as Metaverse Plans Fade

Mark Zuckerberg’s Meta is moving forward with plans to reduce its Reality Labs division workforce by approximately 10 percent, affecting more than 1,000 employees in the unit responsible for developing the company’s virtual reality and Metaverse products.

TechCrunch reports that Meta is implementing significant workforce reductions within its Reality Labs division, the business unit dedicated to building the company’s metaverse experiences. The social media giant plans to eliminate roughly 10 percent of positions within the division, which currently employs approximately 15,000 people. The cuts are expected to impact over 1,000 employees.

The layoffs represent a notable shift in Meta’s approach to its virtual reality and metaverse ambitions, areas that Mark Zuckerberg previously positioned as central to the company’s future. The restructuring comes as Meta redirects significant resources toward artificial intelligence development, reflecting broader industry trends and competitive pressures in the rapidly evolving tech landscape.

In addition to the workforce reductions, Meta is shuttering multiple game development studios that have been working on virtual reality content. According to a separate report from CNBC, the company plans to close Armature Studio, Twisted Pixel, and Sanzaru, all of which have been developing VR gaming titles. Meta is also eliminating Oculus Studios Central Technology, a technical unit that provided support for virtual reality game development.

In a statement to Breitbart News, a Meta spokesperson wrote: “We said last month that we were shifting some of our investment from Metaverse toward Wearables. This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”

The layoffs mark a significant turning point for Meta’s Reality Labs division, which has been a substantial financial drain on the company. The unit has consistently reported billions of dollars in operating losses as Meta invested heavily in building out its metaverse vision. These losses have drawn scrutiny from investors who have questioned the return on investment for these initiatives.

Meta’s strategic shift away from virtual reality gaming and toward AI mirrors broader changes within the company’s organizational structure. In October, the company reassigned Vishal Shah, who previously led metaverse initiatives, to oversee AI products in a vice president role. This move signaled a reordering of priorities within Meta’s executive leadership.