Meta's Metaverse Vision Faces Major Strategic Retreat, Reality Labs to Lay Off Over 1,000 People

BlockBeats News, January 14th. According to Fox Business, Meta conducted its latest round of layoffs in early 2026, primarily targeting its Reality Labs division (responsible for VR/AR hardware and the metaverse project), marking a significant strategic retreat from Mark Zuckerberg's "metaverse" vision that he has vigorously promoted since 2014. Meta will reduce its Reality Labs division workforce by 10%, equivalent to over 1,000 positions. The affected employees have begun to receive notifications starting this Tuesday.

Meta is shifting from metaverse products to wearable devices, particularly AI smart glasses. Its metaverse project has been deeply unprofitable for a long time, with Reality Labs accumulating operational losses of over $70 billion since 2021, and a loss of $4.4 billion in just the third quarter of the 2025 fiscal year.