Meta's "metaverse" vision is undergoing a major strategic retreat; Reality Labs lays off over 1,000 employees.

According to a report by Fox Business on January 14th, Meta is planning its latest round of layoffs in early 2026, primarily targeting its Reality Labs division (responsible for VR/AR hardware and the Metaverse project). This marks a significant strategic retreat from the "Metaverse" vision that Zuckerberg has been pushing since 2014. Meta will cut 10% of its Reality Labs staff, equivalent to more than 1,000 jobs. Affected employees have been receiving notifications since Tuesday. Meta is shifting its focus from Metaverse products to wearable devices, particularly AI smart glasses. Its Metaverse project has been consistently unprofitable; Reality Labs has accumulated operating losses exceeding $70 billion since 2021, with a loss of $4.4 billion in the third quarter of fiscal year 2025 alone.