Meta’s Metaverse Dream Takes Another Hit as It Plans Layoffs Within Reality Labs

Meta’s long-running metaverse ambitions appear to be facing yet another reality check. According to a report from The New York Times (via The Verge), Meta is expected to lay off roughly 10 percent of its Reality Labs workforce, with the cuts primarily affecting employees working on metaverse-related projects.

The reported layoffs come as Meta continues to double down on AI, which shifts internal focus and resources away from virtual reality. The move suggests that AI is now taking clear priority over the company’s once-hyped metaverse vision.

According to the report, Meta’s Chief Technology Officer, Andrew Bosworth, recently called for an in-person meeting, describing it as the “most important” gathering of the year. For those unaware, Bosworth oversees Reality Labs, a division that employs around 15,000 people.

Meanwhile, Meta hasn’t officially confirmed layoffs, nor has it commented on the claims made in the report. The news comes on the heels of a Bloomberg report from December 2025, which suggested that Meta was planning to slash its metaverse budget by nearly 30 percent.

That alone hinted at growing uncertainty around the long-term future of Reality Labs and its VR-heavy roadmap. What’s your take on this matter? Do let us know in the comments below.