Meta to Lay Off Around 1,500 Jobs as AI Takes Priority

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Sacramento: Meta Platforms Inc., the parent company of Facebook and Instagram, is preparing another round of job cuts that could affect around 1,500 employees in its Reality Labs division, according to sources familiar with the matter. The layoffs would impact nearly 10 per cent of the unit’s workforce, which currently numbers about 15,000 employees. 

The move reflects a significant strategic shift as Meta reallocates resources away from virtual and augmented reality projects and accelerates investment in artificial intelligence and large-scale data centre infrastructure. Reality Labs is responsible for Meta’s metaverse-related products, including Quest VR headsets, Ray-Ban smart glasses and the Horizon Worlds platform.

Sources said the job reductions are part of a broader internal realignment under Chief Executive Officer Mark Zuckerberg, who is increasingly positioning AI as the company’s primary growth engine, citing faster development cycles and stronger commercial potential compared to metaverse initiatives.

Adding to internal uncertainty, Meta’s Chief Technology Officer Andrew Bosworth has scheduled what he described as the “most important” all-hands meeting of the year for Reality Labs staff. Employees have been instructed to attend the meeting in person, an unusual step for a division known for its flexible remote-work culture. Internal communications indicate the meeting will take place shortly after the layoffs are announced.

Reality Labs was once central to Meta’s long-term vision, but recent developments — including restructuring, budget tightening and a reported 30 per cent reduction in funding last month — suggest the metaverse is no longer the company’s top priority.

Instead, Meta is channeling heavy investment into AI infrastructure, including the Meta Compute project, which aims to build data centres capable of supporting “tens of gigawatts” of computing power. Zuckerberg has promoted the initiative as the foundation of Meta’s next competitive advantage.

The planned layoffs highlight the broader tech-sector job crunch, as companies pivot rapidly toward AI-driven automation. Industry observers note that while AI is creating new opportunities, it is not generating jobs fast enough to offset losses in other areas, leaving many skilled workers facing growing uncertainty.