Meta Layoffs 2026: Around 1,500 Jobs Likely to Be Cut From Reality Labs Amid AI Shift
Meta Platforms is reportedly preparing to cut nearly 1,500 jobs from its Reality Labs division in 2026, as the company reassesses its priorities and shifts greater focus toward artificial intelligence. If implemented, the move could impact close to 10 percent of the division’s estimated workforce of 15,000 employees.
According to reports citing people familiar with the matter, the decision comes amid mounting financial pressure on Reality Labs, which has struggled with heavy operational losses. During Meta’s third-quarter earnings call for 2025, the company disclosed that the division posted operating losses of approximately $4.4 billion (around ₹37,000 crore). These losses were largely attributed to high costs associated with the development and production of augmented reality (AR) and virtual reality (VR) products, including Meta AI Glasses and Quest headsets.
Industry reports suggest that Meta has already begun tightening spending on its metaverse-focused unit. A Bloomberg report published last month claimed that the company planned to reduce Reality Labs’ budget for 2026 by up to 30 percent, signalling a strategic pivot towards AI-driven initiatives, including its newly formed Superintelligence Labs.
This shift has raised questions about Meta’s long-term commitment to the metaverse, once described by CEO Mark Zuckerberg as a cornerstone of the company’s future. While Meta has not officially commented on whether future AR and VR product launches will be affected, analysts believe the renewed emphasis on AI could slow progress in immersive technologies.
Adding to speculation, recent reports indicate that Meta’s Chief Technology Officer and Head of Reality Labs, Andrew Bosworth, called an urgent all-hands meeting this week, describing it as the “most important” meeting of the year and requesting in-person attendance from team members. The timing of the meeting has led to speculation that it may be linked to the reported layoffs.
According to The New York Times, employees working closely on metaverse-related projects are likely to be among the most affected, though Meta has not made any official announcement regarding job cuts so far.
Meta continues to expand its AI portfolio, recently announcing display upgrades for its Ray-Ban smart glasses at CES 2026 and completing multiple AI-focused acquisitions in 2025. These moves underline the company’s broader transition toward artificial intelligence as a central growth driver.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)
