Meta to Reduce Reality Labs Workforce by 10%, Says NYT

• Reality Labs has roughly 15,000 employees, with cuts expected to disproportionately affect the metaverse unit working on VR headsets and virtual social networks
• The metaverse project has underperformed despite massive investment from CEO Mark Zuckerberg, while Meta's Ray-Ban smart glasses have shown early success where competitors like Google and Apple failed
• Meta CTO Andrew Bosworth, who oversees Reality Labs, has called an in-person staff meeting for Wednesday following the expected Tuesday announcement

Summary: Meta to Cut 10% of Reality Labs Workforce

Key Development:

Meta Platforms plans to reduce its Reality Labs division workforce by approximately 10%, according to the New York Times. The cuts could be announced as soon as Tuesday and will disproportionately impact employees working on metaverse-related projects, including virtual reality headsets and virtual social networks.

Scale and Scope:

Reality Labs currently employs roughly 15,000 workers, meaning approximately 1,500 positions could be eliminated. The division is responsible for Meta's Quest mixed-reality headsets, Ray-Ban smart glasses (developed with EssilorLuxottica), and augmented-reality glasses, in addition to metaverse initiatives.

Strategic Context:

The metaverse was a flagship project championed by CEO Mark Zuckerberg, who invested heavily in the venture despite its commercial struggles. Meta has faced difficulty selling its vision of an immersive digital universe, though the company has achieved early success with its smart glasses product line—a market where competitors like Google and Apple initially failed to gain traction.

Leadership Response:

Chief Technology Officer Andrew Bosworth, who oversees Reality Labs, has scheduled a Wednesday meeting and requested staff attend in person, according to an internal memo cited by the NYT.

Market Implications:

These cuts signal Meta's strategic shift away from its ambitious metaverse investments toward more commercially viable products. The restructuring reflects broader tech industry cost-cutting trends and suggests Meta is prioritizing profitability over experimental ventures. Investors may view this as a positive efficiency measure, though it marks a significant retreat from Zuckerberg's previously touted metaverse vision.