Meta plans to cut 10% of jobs in its Reality Labs division, as part of a broader strategy to shift resources from some virtual reality products to other wearable AI devices.
The cuts are expected later this week, according to a person familiar with the company’s plans who was not authorized to speak publicly. CEO Mark Zuckerberg asked executives late last year to pursue budget reductions within Reality Labs, including cuts to some of the company’s virtual reality and metaverse products, as previously reported by Bloomberg News.
Reality Labs, which houses the teams responsible for virtual reality headsets, AI glasses and products linked to the metaverse, has been recording losses of billions of dollars per quarter in recent years, as Meta invests in products that do not yet generate relevant revenue.
In December, executives discussed budget cuts of up to 30% for the metaverse group, which is part of Reality Labs, according to Bloomberg News. The division has around 15 thousand employees. THE New York Times previously reported Meta’s layoff plans for this week.
A spokesperson for Menlo Park, Calif.-based Meta declined to comment.
© 2026 Bloomberg L.P.
