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Meta Cuts About 10% of Reality Labs as It Shifts Spending to AI Wearables

The restructuring redirects spending after steep Reality Labs losses to speed development of AI wearables.

Overview

  • Layoff notices began Tuesday morning local time, affecting more than 1,000 employees and roughly a tenth of the unit, according to an internal memo.
  • Meta is reallocating resources from VR and metaverse projects to AI-powered wearables and mobile features, with Horizon experiences moving to phones.
  • A company spokesperson said savings from the shake-up will be reinvested to support wearables growth this year, while VR funding will be reduced but not halted.
  • CTO Andrew Bosworth scheduled an in-person meeting for Wednesday that he called the most important of the year.
  • Reality Labs has accumulated losses exceeding $70 billion since late 2020, and reports say VR headset and VR social networking teams face deeper cuts than AR and wearables.