Meta is restructuring its Reality Labs division to accelerate development of AI and wearable products. The company is dissolving the central Foundations engineering team and embedding those employees into specific wearables and virtual reality groups. This reorganization aims to foster closer collaboration and speed up execution in the smart glasses and mixed reality markets.
The move signals a strategic shift away from the capital-intensive metaverse vision toward commercially viable AI-powered hardware. Reality Labs has accumulated tens of billions of dollars in losses to date. Meta is creating smaller AI-native pods and implementing layoffs to flatten the organizational structure.