Meta is reportedly planning to lay off approximately 1,500 employees, about 10% of its Reality Labs division, which focuses on VR/AR products like Quest headsets and smart glasses. This move signals a strategic shift, with Meta prioritizing investment in artificial intelligence and large-scale data centers over its metaverse ambitions. The company's CTO, Andrew Bosworth, has called a critical all-hands meeting for Reality Labs staff, expected to coincide with the layoff announcements. Reality Labs has incurred significant financial losses, prompting the restructuring.