Meta Cuts Over 1,000 Jobs in Reality Labs Amid Shift to AI and Wearables

Meta has begun laying off over 1,000 employees, about 10% of its Reality Labs division, as part of a strategic shift from metaverse projects toward AI-powered wearables and mobile features. The restructuring includes shutting down three VR game studios and scaling back other VR initiatives. Meta aims to reinvest savings to support wearable technology growth, reflecting broader industry trends favoring AI. Employees were notified starting January 13, 2026, with impacts visible across the VR and gaming communities.