Trends
Meta Scales back metaverse efforts in favour of AI devices
Meta cuts over 1,000 Reality Labs jobs and closes VR studios as it pivots from metaverse to AI wearables like Ray-Ban smart glasses.
Headline
Meta cuts over 1,000 Reality Labs jobs and closes VR studios as it pivots from metaverse to AI wearables like Ray-Ban smart glasses.
Context
Meta Platforms is significantly scaling back its metaverse strategy, shedding over 1,000 roles in its Reality Labs division and winding down key virtual reality initiatives. According to an internal memo reportedly authored by Chief Technology Officer Andrew Bosworth , roughly 10 per cent of Reality Labs staff will be affected as the company reallocates spend toward more promising products such as AI glasses and wearable devices. The cuts have hit teams involved in building VR content and hardware, with internal communications indicating that several in-house VR game studios will be shut down and development resources trimmed back. Staff working on Horizon Worlds — Meta’s flagship social metaverse platform — are being redirected to focus on mobile metaverse experiences rather than immersive virtual-reality content.
Evidence
Pending intelligence enrichment.
Analysis
In parallel, Meta is reportedly in discussions with EssilorLuxottica, the parent company of Ray-Ban, to boost production of its Meta Ray-Ban Display AR/AI glasses. These wearable units, first released in late 2025, have seen surprisingly strong demand in the United States, prompting Meta to delay international launches so it can meet current orders. This latest restructuring follows earlier indications that Meta planned to cut up to 30 per cent of its metaverse budget as part of its 2026 financial planning, signalling a more cautious approach to a vision that once defined the company’s strategic identity. Also Read: Meta signs nuclear power deals for AI data centres Also Read: Meta appoints Dina Powell McCormick as president Meta’s retrenchment from the metaverse marks a significant shift in the tech industry’s broader narrative around extended-reality platforms. When the company rebranded from Facebook to Meta in 2021, it positioned the metaverse as its future core business and invested tens of billions into virtual worlds and VR hardware. The latest moves indicate that consumer adoption of immersive virtual environments has fallen short of expectations, prompting leadership to prioritise areas with clearer demand, such as AI-centric wearables and mobile experiences.
Key Points
- Meta is cutting more than 1,000 jobs and closing several virtual reality (VR) studios as it shifts resources away from its long-promoted metaverse projects toward AI-powered wearables and other technologies.
- The move reflects a broader retrenchment of the company’s metaverse ambitions, including a pivot toward mobile experiences and products like Ray-Ban Meta smart glasses that have seen stronger consumer interest.
Actions
Pending intelligence enrichment.
