Meta Platforms Inc. is reportedly set to lay off 10% of its Reality Labs division, a core unit focused on virtual reality (VR) and metaverse development. Reality Labs, responsible for products including Oculus headsets and Meta’s broader metaverse initiatives, has faced mounting financial pressures as the company works to balance heavy investments with slower-than-expected adoption of immersive technologies.
The layoffs are part of a wider strategy by Meta to streamline costs and refocus priorities within its Reality Labs business. Analysts note that while VR adoption is growing, it has yet to reach a scale that justifies Meta’s extensive spending, which includes R&D for augmented reality (AR) glasses, AI-driven metaverse environments, and software platforms for social and enterprise applications.
Reality Labs has historically been one of Meta’s most capital-intensive divisions, reporting billions in operating losses annually despite generating some revenue from hardware sales. The decision to reduce staff signals the company’s intention to tighten spending and prioritize profitable initiatives within the VR and AR sectors.
Experts suggest the move could impact Meta’s product roadmap, including upcoming VR headset releases and metaverse applications, as the company seeks a more sustainable growth trajectory while maintaining competitiveness against rivals like Apple, Microsoft, and other AR/VR hardware developers.
Meta’s CEO has previously emphasized a long-term vision for immersive technologies but acknowledged that the path to mainstream adoption is slower than anticipated. The current restructuring could allow Reality Labs to focus on high-impact projects and partnerships while controlling operational costs.
