Meta intends to reduce its Reality Labs workforce by approximately 10%, according to a report from the NYT

Meta to Reduce Workforce in Reality Labs Division

According to a report from the New York Times on Monday, Meta is preparing to lay off approximately 10% of its Reality Labs staff, a team responsible for developing products such as the metaverse. The information comes from three individuals familiar with the situation.

Reality Labs, which employs about 15,000 people, may see these job cuts announced as early as Tuesday. The reductions are expected to mainly impact employees working on virtual reality headsets and online social platforms within the metaverse division.

CEO Mark Zuckerberg has been the driving force behind the metaverse initiative, investing significant resources into the project. Despite this focus, the division has accumulated losses exceeding $60 billion since 2020.

In addition to its metaverse efforts, Reality Labs is also responsible for producing Meta's Quest mixed-reality headsets, smart glasses developed in partnership with Ray-Ban owner EssilorLuxottica, and augmented reality eyewear.

While Meta has faced challenges convincing consumers to embrace its vision of a connected digital world, its smart glasses have gained some traction. This comes as rivals like Google and Apple have struggled to make a significant impact with their own early products in this market.

Andrew Bosworth, Meta’s Chief Technology Officer and head of Reality Labs, has reportedly scheduled an in-person meeting for staff on Wednesday, according to a memo cited by the New York Times.

Meta has not yet provided a response to Reuters’ request for comment regarding these developments.

This news emerges as Meta, the parent company of Facebook, works to maintain its position in Silicon Valley’s artificial intelligence sector, following a lukewarm reception to its Llama 4 AI model.

Reported by Zaheer Kachwala in Bengaluru; Edited by Anil D'Silva