Meta Prepares To Cut Jobs At Reality Labs After Heavy Losses

Meta is preparing job losses at Reality Labs, the unit behind Meta Quest headsets, Ray Ban Smart Glasses and the Metaverse social network. Three people familiar with the talks told Business Insider that the announcement is expected this week. The New York Times reported that more than 10% of the workforce could be affected.

Reality Labs employs about 15,000 people. Two employees said teams working on virtual reality headsets and Horizon Worlds are likely to feel the largest impact. One person cited by The Times said the figure could reach 10% to 15% of staff.

Andrew Bosworth, Meta’s chief technology officer and head of Reality Labs, has called a division wide meeting for Wednesday. In a memo obtained by Business Insider, he described it as the most important meeting of the year and asked staff to attend in person. Meta declined to comment when asked about the reports.

Why Does 2025 Count For The Unit?

Reality Labs has recorded heavy losses since its launch in 2020. Multiple outlets report losses of more than $70 billion over that period. In the latest quarter, the unit posted a loss of $4.4 billion on sales of $470 million, according to Meta results.

Susan Li, Meta’s finance chief, said revenue for Reality Labs in the fourth quarter is expected to come up lower than the same period a year earlier. That earlier quarter delivered $1.1 billion in revenue. The financial gap has placed pressure on the unit as Meta directs more spending towards AI.

In a memo seen by Business Insider last year, Bosworth described 2025 as the most critical year of his time running Reality Labs. He wrote that the outcome would decide if the work is remembered as visionary or a legendary misadventure. That message now hangs over staff as they await news.

Meta’s wider business says something else, the company reported a 26% rise in revenue in the third quarter to $51.2 billion, beating expectations. Even so, Meta shares closed down 1.7% on Monday and are down 2.7% since the start of the year, according to market data.

Arno Nel, AI Product Director, at Advania commented: “AI will continue to displace jobs in 2026, but not in the dramatic “robots taking over” way people imagine. Meta’s cuts are a preview of what’s coming: companies realising they can hit the same targets with fewer people when AI handles the grunt work.

“What makes 2026 different from previous automation waves is the speed and breadth. Previous tech disrupted specific industries over decades. AI is hitting multiple sectors simultaneously over months. That’s the real challenge: not whether jobs will change, but whether people and systems can adapt fast enough.

“Companies that invest in retraining will probably win. Those that just cut costs will likely struggle when they realise AI still needs human oversight, creativity, and judgment. But let’s be honest about the transition period: it’s going to be messy for a lot of people.”

Meta carried out job losses elsewhere only months ago, cutting about 600 roles at its Superintelligence Labs, the group working on artificial intelligence, according to Business Insider. That context adds weight to staff concerns inside Reality Labs as attention and funding flow towards AI work. The coming meeting is expected to bring clarity on jobs and priorities, even as Meta keeps silent in public.