The Meta layoffs Reality Labs AI shift has intensified as the company cuts hundreds of jobs across key divisions. Reports indicate that employees in Reality Labs, social media teams, and recruitment roles are among those affected.
Sources with knowledge of the situation confirmed the layoffs, indicating a larger restructuring within the tech giant. The layoffs affect several departments, including Meta’s Reality Labs unit, which focuses on virtual reality projects such as Horizon Worlds and Quest headsets.
Although earlier reports suggested that up to 20% of the workforce could be affected, current layoffs appear limited compared to Meta’s total workforce of nearly 79,000 employees.
Meta has recently indicated a strategic shift away from its metaverse ambitions. Earlier this month, the company announced plans to shut down Horizon Worlds on its Quest VR platform. However, after receiving user feedback, Meta partially reversed that decision. Users will now be able to access existing experiences, but the company will not introduce new VR content. This change highlights a broader reassessment of its long-term metaverse strategy.
A major factor behind the layoffs is Meta’s aggressive push into artificial intelligence. CEO Mark Zuckerberg has outlined plans to significantly increase AI spending in 2026.
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The company aims to invest up to $135 billion in AI, nearly matching its total spending over the previous three years combined. This shift highlights the growing importance of AI across the tech industry.
Despite heavy investment, Meta has faced hurdles in AI development. Its new foundational model, codenamed “Avocado,” reportedly failed to outperform competing systems in early testing. This delay has added pressure on the company as it competes with rivals in the AI space.
Meta is not alone in reducing its workforce. Other major tech companies have also announced significant layoffs as they redirect their resources towards AI. Earlier this year, Amazon cut 16,000 positions, while Microsoft eliminated more than 15,000 roles in 2025.
