Meta Platforms announced it is laying off approximately 1,500 employees. The cuts primarily impact the Reality Labs division. This move controls spending and re-evaluates significant investments in the metaverse and virtual reality. Reality Labs has consistently generated heavy losses.
CFO Susan Li confirmed Meta remains committed to VR long-term. Future investment will shift toward wearables, such as smart glasses. Wearables show more promising market demand.
As part of the restructuring, Meta shut down several VR-focused gaming studios. The company expects Reality Labs losses to peak in 2026. Losses should begin to decline in 2027.