adminMeta Reality Labs layoffs could affect around 10% of the division’s workforce, according to reports. The unit focuses on virtual reality, augmented reality and metaverse products, and the reported reductions come as Meta shifts some investment toward AI glasses and wearable devices. The plans have not been presented here as a confirmed company announcement.
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What is reported about Meta Reality Labs layoffs?
Reports say Meta may announce cuts to Reality Labs as early as Tuesday, January 13. The division employs approximately 15,000 people, while Meta’s total workforce is about 78,000. A reduction of roughly 10% would therefore affect a portion of the division, although the exact number of roles and teams involved has not been specified.
For employees and observers, the distinction between reported plans and a confirmed decision is important. The available information does not identify which positions could be affected or provide a timetable for any potential changes.
Why has an in-person staff meeting drawn attention?
Meta chief technology officer Andrew Bosworth reportedly scheduled a meeting for Reality Labs employees on Wednesday, January 14, and encouraged them to attend in person. In a memo, he described it as the “most important” meeting of the year but did not provide further details.
The timing has prompted questions about whether the meeting is connected to the reported workforce reductions. However, no confirmed link between the meeting and layoffs has been provided. Employees should rely on official internal communications for details about any decisions that affect their roles.
Reality Labs’ spending and financial results
Plans for lower spending at Reality Labs had reportedly been discussed in December 2025. At the time, Meta management was said to be considering budget reductions of up to 30% across the division during 2026. A Meta spokesperson said the company was shifting some investment from the metaverse toward AI glasses and wearables, citing momentum in those areas, and said broader changes were not planned.
The division’s financial performance provides context for the scrutiny around its investments:
- For the three months ending December 31, 2024, Reality Labs reported $1.08 billion in revenue and an operating loss of $4.967 billion.
- For the full 2024 financial year, it generated $2.1 billion in revenue and recorded a loss of $17.7 billion.
- For the three months ending September 30, 2025, revenue was $470 million, while the loss was $4.4 billion.
Meta chief financial officer Susan Li also forecast lower year-on-year revenue from Reality Labs for the fourth quarter ending in December 2025. Since Facebook changed its name to Meta in 2021, the company has lost more than $70 billion on its metaverse plans.
What to watch next
The key details to look for are whether Meta formally confirms workforce changes, how many roles may be affected, and whether the company provides more information about its investment priorities. Until then, the reported Meta Reality Labs layoffs and the purpose of the staff meeting should be treated as unconfirmed.
