- Meta (NASDAQ:META) cuts over 1,000 jobs in its Reality Labs division, marking the Bay Area’s first major tech layoff of 2026
- Layoffs target metaverse projects, not core platforms like Facebook, Instagram, or WhatsApp; Reality Labs saw a US$17.7B loss in 2024
- Strategic pivot to AI and wearables, with investments shifting toward AI-powered glasses and next-gen artificial intelligence research
- Meta stock (NASDAQ:META) opened trading at US$626.50
Menlo Park-based Meta (NASDAQ:META) announced a sweeping round of layoffs, cutting more than 1,000 positions in what marks the Bay Area’s first significant tech workforce reduction of 2026.
The cuts primarily target Reality Labs, Meta’s metaverse-focused division, which has been a cornerstone of the company’s virtual reality ambitions.
Reality Labs, home to products like VR headsets and Ray-Ban smart glasses, employs roughly 15,000 people. The latest move will trim about 10 percent of that workforce, though sources suggest the reductions could surpass that figure. The layoffs will not affect Meta’s flagship platforms—Facebook, Instagram, and WhatsApp—according to reporting by SFGATE and Gematsu via Bloomberg.
The decision is a symptom of a dramatic pivot for Meta, which has faced mounting financial pressure and tepid consumer interest in its metaverse offerings. Reality Labs posted a staggering US$17.7 billion loss in 2024, fuelling skepticism about the viability of Zuckerberg’s vision for an “embodied internet.”
Meta spokesperson Tracy Clayton confirmed the layoffs, citing a shift in priorities: “We said last month that we were shifting some of our investment from Metaverse toward Wearables,” Clayton told SFGATE. The company plans to redirect resources toward its wearables line, including AI-powered smart glasses, while doubling down on artificial intelligence research through its TBD Lab.
Founder Mark Zuckerberg’s recalibration comes amid fierce competition and a broader industry trend toward AI innovation. By reallocating funds from metaverse projects to next-generation AI and wearable technology, Meta aims to regain momentum in a rapidly evolving tech landscape.
Meta Platforms Inc. develops products that can enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, augmented reality, and wearables worldwide.
Meta stock (NASDAQ:META) opened trading down around a per cent at US$626.50 and has lost more than one per cent since this time last year.
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