Yes. Meta has eliminated Reality Labs jobs in several rounds, including an estimated 10% reduction in January 2026 and additional company-wide cuts in March. The evidence points to a narrower portfolio and a stronger push into AI-powered glasses and wearables—not an end to Reality Labs, Quest or virtual reality.
The layoff timeline
April 2025: first confirmed cuts
On April 24, 2025, Meta confirmed an unspecified number of Reality Labs layoffs. The company described the change as a restructuring intended to make its studios more efficient while continuing existing mixed-reality content. Reuters reporting carried by Investing.com did not provide a headcount.
January 2026: the major Reality Labs reduction
Reports on January 12–14 said Meta planned to cut approximately 10% of Reality Labs. The division was reported to have about 15,000 employees, so 10% would imply roughly 1,500 positions; Bloomberg described the affected total as more than 1,000. Those are estimates from reporting, not a complete number released by Meta. The New York Times cited a possible 10% to 15% range, while Bloomberg’s central estimate was about 10%.
The January restructuring was linked to reductions or reprioritization of some metaverse and VR projects, including studio work. Reports said Meta was directing more resources toward AI-enabled wearables, smart glasses and AI features for phones.
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March 25, 2026: another company-wide round
Meta then eliminated several hundred jobs across the company, including positions in Reality Labs hardware, sales and recruiting. The New York Times put the company-wide total at about 700, but that figure is not a Reality Labs headcount. No public source in this record gives a complete Reality Labs-only total for the March round. Bloomberg and The New York Times both described the broader cuts.
How many Reality Labs employees were affected?
The most defensible description combines the available estimates:
- January: approximately 10% of a reported 15,000-person division.
- That implies about 1,500 roles mathematically, while Bloomberg reported more than 1,000 affected employees.
- The New York Times reported a possible 10%–15% range, but the higher figure was not confirmed by Meta.
- March: several hundred Meta employees overall, with Reality Labs hardware among the affected groups; the Reality Labs portion was not disclosed.
Some reporting also refers to transfers, studio changes or project reductions. Therefore, “about 1,500 Reality Labs layoffs” should be treated as an estimate based on the reported percentage and division size, not an official final count.
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Which teams appear to be under pressure?
Available reports point to pressure on metaverse-related work, VR software and content, Oculus/Quest studios, selected hardware teams and studios producing Horizon Worlds or VR games. Teams associated with fitness and VR content, including work linked to Supernatural, were also reported as affected. The evidence does not establish that every Quest hardware engineer, every VR software group or all Reality Labs employees were targeted.
The March round specifically included the Reality Labs hardware division. “Reality Labs” is broader than “the metaverse”: Meta’s segment covers virtual-, augmented- and mixed-reality hardware, software and content, as well as products such as Quest and related services.
Why is Meta cutting jobs while still investing?
Resources are moving toward AI wearables
January reporting connected the cuts to a strategic shift toward AI-enabled smart glasses, other wearables and phone-based AI features. The New York Times said Meta reported selling more than two million glasses over the preceding few years. That is a company-reported cumulative figure, not a current-quarter sales result.
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Reality Labs remains extraordinarily expensive
Meta’s own financial materials show why management is applying tighter portfolio discipline:
| Period | Revenue | Operating-loss measure |
|---|---|---|
| Q3 2025 | $470 million | $4.432 billion Reality Labs operating loss |
| Full year 2025 | Not stated in the cited annual material | Reality Labs investments reduced Meta’s overall 2025 operating profit by approximately $19.19 billion |
| 2026 outlook | Not stated | Meta said Reality Labs operating losses were expected to remain similar to 2025 levels |
The quarterly figures come from Meta’s Q3 2025 earnings presentation. The annual impact appears in Meta’s 2025 annual-report material. These figures use different reporting periods and accounting presentations; they show the scale of the investment, not that layoffs will make Reality Labs profitable.
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Meta continues to report Reality Labs as a separate operating segment and has said its losses should remain similar in 2026. That combination indicates continuing investment alongside reductions in selected projects and teams. Meta’s broader pattern also includes hiring and heavy spending in AI, so the company is reallocating resources rather than shrinking every business uniformly.
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Is Meta abandoning VR or the metaverse?
No definitive evidence supports a total withdrawal. Meta still reports Reality Labs, continues to describe the segment in its financial disclosures and expects substantial ongoing losses. Company representatives and developer-facing personnel have also said Meta is not leaving VR, although those statements are not guarantees about every future product.
There is, however, evidence of a retreat from some parts of the original metaverse plan:
- Layoffs and reported studio reductions affected metaverse and VR-related work.
- Some content and project investments were reduced or reprioritized.
- AI glasses and wearables received stronger strategic emphasis.
The accurate interpretation is a narrowing of the bet: Meta is reducing or reshaping selected VR and metaverse operations while continuing to fund immersive computing and placing greater priority on AI-enabled glasses.
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What does this mean for Quest users?
Quest sits inside Reality Labs, so it is within the division being reorganized. The layoffs alone do not show that Quest hardware is canceled or that support for existing headsets will end. Users should look for concrete changes rather than infer a discontinuation from a headcount announcement.
- Quest hardware announcements, cancellations or release-date changes.
- Changes to software-support timelines or platform updates.
- First-party game and studio output, including Horizon-related projects.
- Changes in pricing, availability or the number of new Quest titles.
What should investors and employees watch next?
- Quarterly Reality Labs revenue and operating losses.
- New roles or transfers into AI, glasses and wearable-device teams.
- Further studio closures, project cancellations or Horizon Worlds budget changes.
- The Quest hardware roadmap and first-party software pipeline.
- Sales and geographic availability of Ray-Ban Meta and other AI glasses.
- Whether Meta’s guidance continues to forecast Reality Labs losses near 2025 levels.
How the cuts fit Meta’s wider workforce changes
The Reality Labs reductions are not Meta’s entire layoff program. Reporting summarized by The Information said Meta cut about 5% of its workforce, or roughly 3,600 employees, in January 2025. The March 2026 action affected several departments beyond Reality Labs. Taken together with continued AI hiring and spending, the pattern is better described as restructuring and strategic reallocation than a simple company-wide contraction.
Bottom line
Meta is laying off Reality Labs employees, with the largest reported round in January 2026 and another round in March. The January estimate is roughly 10% of the division—more than 1,000 people and possibly about 1,500 by applying the reported percentage to a 15,000-person workforce—but Meta has not published a definitive Reality Labs total. The cuts show that Meta is concentrating resources on AI glasses and wearables and reducing some metaverse and VR work. They do not establish that Quest or virtual reality has been abandoned.
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