Meta is laying off several hundred employees across multiple teams.
Reports indicate that several hundred employees across multiple divisions – including Reality Labs – have been affected, following earlier layoffs this year that reportedly impacted over 1,000 positions.
The layoffs reportedly also affect Facebook product teams, recruiting, sales, and global operations – spanning both the company’s social media core and its technology-heavy initiatives.
While Meta has not disclosed exact figures, sources suggest roughly 700 employees may be impacted in this latest round.
A Meta spokesperson described the move as part of ongoing restructuring – “Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals. Where possible, we are finding other opportunities for employees whose positions may be impacted.”
From VR Hype to AI Focus
Meta’s leadership has been quietly reshaping the company, pivoting away from the costly “metaverse” experiments that were meant to redefine the company beyond social media.
The Reality Labs division – responsible for Quest VR headsets and Horizon Worlds virtual social platforms – has been central to both investment and scrutiny.
Earlier this year, Reality Labs reportedly cut more than 1,000 positions – and today, several hundred more jobs across multiple divisions are affected.
Since its rebranding from Facebook to Meta, Reality Labs has lost over $70 billion, with ambitious VR and metaverse bets failing to produce the expected returns.
Meta’s current approach reflects a shift in focus towards AI with aggressive spending to catch up to competitors like OpenAI, Google, and Anthropic.
This year alone, projected AI infrastructure spending is estimated to exceed $100 billion, covering data centers, AI labs, and recruitment of top AI talent.
Lessons From VR and Metaverse Bets
The repeated reductions in Reality Labs underscore the difficulty of turning ambitious VR concepts into commercially viable products.
The division has struggled with both Quest headset sales and Horizon Worlds’ user growth, leaving investors questioning the returns on Meta’s multibillion-dollar metaverse gamble.
Despite the setbacks, Reality Labs remains part of Meta’s strategic plan, focusing now on wearables and augmented reality products that integrate AI.
