Meta Announces Significant Layoffs in Reality Labs Amid Strategic Shift

According to BlockBeats, Meta is set to implement a new round of layoffs in early 2026, primarily targeting its Reality Labs division, which is responsible for VR/AR hardware and metaverse projects. This move marks a significant strategic retreat from the metaverse vision that CEO Mark Zuckerberg has been heavily promoting since 2014. The company plans to reduce the Reality Labs workforce by 10%, affecting over 1,000 positions, with impacted employees beginning to receive notifications starting Tuesday. Meta is shifting its focus from metaverse products to wearable devices, particularly AI smart glasses. The company's metaverse projects have been experiencing substantial financial losses, with Reality Labs accumulating operational losses exceeding $70 billion since 2021. In the third quarter of the 2025 fiscal year alone, the division reported a loss of $4.4 billion.