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Latest Meta Layoffs 2026: Nearly 1,500 Employees Cut from Reality Labs

Latest Meta Layoffs 2026: Nearly 1,500 Employees Cut from Reality Labs

About 10 percent of the Reality Labs workforce is reportedly being fired.

Written by Akash Dutta, Edited by Ketan Pratap | Updated: 14 January 2026 13:53 IST

Latest Meta Layoffs 2026: Nearly 1,500 Employees Cut from Reality Labs

Photo Credit: Meta

Meta is reportedly planning to reduce Reality Labs’ budget by 30 percent

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Highlights

Meta’s shift of focus to AI is said to be the reason behind the layoffs
Reality Labs’ chief has reportedly called for an all-hands meeting
The layoff could affect the future of Meta’s AR and VR devices

Meta is reportedly planning to cut thousands of jobs in its Reality Labs division. As per a report, the Menlo Park-based tech giant's layoff can affect as much as 10 percent of the division's total workforce of 15,000. It is said that multiple reasons have triggered the move, some of which include the large operational losses incurred by the division and a shift of focus to artificial intelligence (AI). Notably, a separate report had claimed that the division's head had called for an all-hands meeting this week.

Meta's Reality Labs to Reportedly See Job Cuts

Meta's Reality Labs is going through a rough patch. During the company's earnings call for the third quarter of 2025, it was revealed that the division had incurred operating losses of $4.4 billion (roughly Rs. 37,000 crore). The losses were primarily due to the large expenses required to develop and manufacture the augmented reality (AR) and virtual reality (VR) devices under the Meta AI Glasses and Quest branding.

Last month, a Bloomberg report had claimed that the Mark Zuckerberg-led company was planning to slash the division's budget for 2026 by as much as 30 percent, with the primary reason being a shift of focus to AI and its newly created Superintelligence Labs. The loss of revenue raised concerns that the company might be moving away from Metaverse, one of the most ambitious projects of the company. It is unclear how this impacts the development and launches of future AR and VR wearables.

Meta’s Reality Labs Chief Summons Team for an Urgent Meeting Next Week

Another report last week had claimed that Meta's Chief Technology Officer and the Head of Reality Labs division, Andrew Bosworth, had called for an all-hands meeting this week. He had reportedly insisted that the entire team attend this meeting in person, and that it was the “most important” meeting of the year.

Now, according to The New York Times, the company is planning to let go of as many as 1,500 employees from the division. Citing unnamed sources familiar with the matter, the publication claimed that the job cuts could particularly impact those working on the metaverse project. The all-hands meeting could be related to this move, as the company has yet to announce the layoffs publicly.

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Further reading: Meta, Meta Reality Labs, AR, VR, Layoffs

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More