Meta Platforms, the tech giant once known as Facebook, has announced significant layoffs in its Reality Labs division, cutting approximately 1,500 jobs. The layoffs represent about 10% of the division’s workforce, according to a source familiar with the matter. Reality Labs is responsible for Meta’s work in virtual and augmented reality, including its ambitious metaverse projects.
In a statement, a Meta spokesperson said, "We said last month that we were shifting some of our investment from Metaverse toward Wearables. This is part of that effort." The move comes as Meta redirects funding away from its metaverse initiatives and toward the development of wearable technologies, such as artificial intelligence-powered glasses.
This shift reflects a broader strategy adjustment within Meta. While CEO Mark Zuckerberg had once described the metaverse as the company’s future, the technology has not delivered the level of user engagement the company had hoped for. Last December, The Wall Street Journal reported on Meta’s plans to reallocate resources from its metaverse projects to other growth areas.
Meta’s journey into the metaverse began in 2021, when the company rebranded from Facebook to Meta, signaling its vision of a new era of online connectivity. However, the flagship product of this initiative, Horizon Worlds, struggled to gain traction. One year after the rebrand, Horizon Worlds had fewer than 200,000 monthly active users, and many virtual "worlds" within the platform were rarely visited, as previously reported by The Wall Street Journal. These challenges also made the platform the subject of widespread online criticism and memes.
The decision to restructure Reality Labs highlights Meta’s evolving priorities as it navigates the competitive tech landscape. While the metaverse may remain a long-term goal, the company is now focusing more on wearable technologies that could deliver more immediate returns.
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