Meta makes major strategic retreat from its "metaverse" vision, with over 1,000 layoffs at Reality Labs

BlockBeats News, January 14, according to Fox Business, Meta will conduct a new round of layoffs in early 2026, mainly targeting its Reality Labs division (responsible for VR/AR hardware and metaverse projects), marking a major strategic retreat from the "metaverse" vision that Zuckerberg has vigorously promoted since 2014. Meta will cut 10% of the Reality Labs workforce, equivalent to more than 1,000 positions, and affected employees have begun receiving notifications starting this Tuesday.

Meta is shifting from metaverse products to wearable devices, especially AI smart glasses. Its metaverse projects have suffered long-term heavy losses, with Reality Labs accumulating operating losses of over $70 billions since 2021, and losing $4.4 billions in the third quarter of fiscal year 2025 alone.