Meta to Announce Significant Layoffs in Reality Labs Division

January 12, 2026 - 18:35

This week, Meta is expected to announce a substantial reduction in its workforce, impacting 10% to 15% of employees within its Reality Labs division. This decision comes as the company shifts its focus towards artificial intelligence, reallocating resources amid rising costs and changing market dynamics.

The Reality Labs division has been pivotal in Meta's ambitious plans to develop the metaverse, a virtual environment that aims to reshape social interactions and digital experiences. However, as the company faces financial pressures, it appears that a strategic pivot is necessary to ensure long-term sustainability.

The anticipated layoffs reflect a broader trend within the tech industry, where companies are increasingly scrutinizing their expenditures in the wake of economic uncertainties. Employees within the Reality Labs division are bracing for the impact of these cuts, which could significantly alter the trajectory of Meta's metaverse initiatives. As the company navigates this challenging landscape, the future of its ambitious projects remains uncertain.