Meta is reportedly laying off around 10% of its research and development division, Reality Labs, with cuts likely focused on Metaverse-related personnel.

Meta , the company behind social media platforms like Facebook and Instagram, is planning to lay off 10% of its Reality Labs employees, a research and development division focused on the Metaverse and virtual reality (VR) products, according to a report in The New York Times.

Meta Plans to Cut 10% to 15% of Employees in Reality Labs Business - The New York Times
https://www.nytimes.com/2026/01/12/technology/meta-layoffs-reality-labs.html

Meta Plans to Cut 10% of Jobs at Company's Reality Labs Division - Bloomberg
https://www.bloomberg.com/news/articles/2026-01-12/meta-plans-to-cut-10-of-jobs-at-company-s-reality-labs-division

Meta plans to lay off hundreds of metaverse employees this week | The Verge
https://www.theverge.com/news/860984/meta-reality-labs-layoffs-metaverse

According to a report from The New York Times, Meta CTO Andrew Bosworth announced an internal meeting on January 14th and 'strongly urged employees to attend in-person whenever possible,' calling it 'the most important meeting of the year.'

Bosworth is also in charge of overseeing the Reality Labs division, which employs approximately 15,000 people. Meta reportedly plans to lay off approximately 10% of its Reality Labs employees, with the majority of layoffs focused on employees related to the Metaverse. These cuts are said to be a side effect of Meta's focus on AI, indicating that the company is shifting its focus away from the Metaverse.

The New York Times noted that the Metaverse employee cuts were not a surprise. In fact, Bloomberg reported in December 2025 that Meta plans to cut its Metaverse budget by 30%.

Meta drastically cuts its metaverse budget and shifts to AI wearable devices - GIGAZINE

Technology media The Verge points out, 'While the Metaverse-related job cuts continue, Meta's smart glasses, which it has collaborated with the Ray-Ban brand, are gaining more attention than its VR headsets. Even if AI isn't Meta's current top priority, the Metaverse itself has struggled to gain traction for years. In fact, many users seem to feel that Meta's VR social platform is already dead.'

Meta announced a policy to fire 5% of its poorly performing employees in January 2025, with layoffs scheduled for February. It was also reported that the company plans to lay off 600 employees from its AI division in October.

Meta to lay off 600 employees in AI division - GIGAZINE