Meta Reality Labs layoffs 2026: 1,000 cut as VR focus shifts to AR
Meta has announced more than 1,000 layoffs in its Reality Labs division and the closure of VR studios. Learn about the Meta Reality Labs layoffs 2026 and the shift to AR.
The metaverse dream just hit a $70 billion reality check. Meta is laying off more than 1,000 employees from its Reality Labs division, marking a significant retreat from its original VR-heavy vision. As first reported by Bloomberg, this restructuring includes the closure of key VR game development studios like Sanzaru, Twisted Pixel, and Armature.
The Meta Reality Labs layoffs 2026: A strategic pivot
In an internal memo, Meta CTO Andrew Bosworth announced that the company will refocus its efforts on wearables. This shift signals a future with more products like the AI-powered Ray-Ban Meta smart glasses and potentially fewer iterations of pure VR hardware like the Meta Quest 3. It's clear that augmented reality and wearable AI are now the priorities over immersive virtual worlds.
Why the metaverse failed to materialize
Founder Mark Zuckerberg bet the company's future on the idea that we'd spend our workdays and social lives in VR headsets. While the Quest lineup saw some success as gaming devices, the all-encompassing metaverse never became a daily reality for most. Now, the executives are trimming the VR fat to chase the rising trend of AI-integrated wearables.
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