Metaverse Retreat: Meta Cuts 1,000 Staff to Pivot Toward AI Wearables

According to Bloomberg, Meta has begun a workforce reduction within its Reality Labs division, affecting over 1,000 personnel as the company pivots from the metaverse toward AI wearables. An internal memorandum from Chief Technology Officer Andrew Bosworth reveals that Reality Labs’ future trajectory will gravitate toward the development of AI-integrated wearables, such as the Ray-Ban Meta smart glasses.

The move follows years of heavy losses for Reality Labs, with Meta reportedly haemorrhaging upwards of $70 billion since Mark Zuckerberg’s 2021 rebranding. The company’s metaverse strategy is described as shifting to “mobile devices,” including lightweight wearables designed for seamless integration with mobile ecosystems.

Bosworth’s memorandum states that nearly all team resources are being reallocated to the mobile dimension to catalyse widespread adoption, placing Ray-Ban Meta smart glasses at the centre of the company’s strategy. While high-end VR hardware is not abandoned, it will operate as a leaner, flatter unit with a focused product roadmap to ensure long-term sustainability.