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Meta’s Reality Labs is set for cuts as the firm’s metaverse budget continues Meta’s Reality Labs is set for cuts as the firm’s metaverse budget continues

Meta to cut 10% of metaverse arm this week amid AI push: Report

2026/01/13 11:01

Meta’s Reality Labs is set for cuts as the firm’s metaverse budget continues to decline amid push toward artificial intelligence development.

Meta is reportedly set to lay off around 10% of staff from its metaverse arm this week, as the tech giant focuses its resources on artificial intelligence.

Meta could announce the cuts as soon as Tuesday, the New York Times reported on Monday, citing sources.

Meta’s Reality Labs has around 15,000 staff members. The division focuses on virtual reality (VR) gear such as headsets, as well as operating the firm’s metaverse platforms Horizon Worlds and Horizon Workrooms.

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