Back to today’s briefing

Story perspectives

Meta to Cut 10% of Reality Labs Amid VR Struggles

1/13/2026

31 2 Full Breakdown

Summary

Story summary

Meta Platforms, Inc. plans to lay off about 10 percent of its Reality Labs division, which has around 15,000 employees.
The cuts follow a 30 percent budget reduction for the metaverse and reflect ongoing challenges in gaining traction for virtual reality.
Chief Technology Officer Andrew Bosworth called a crucial meeting for Wednesday to discuss the plan, as Ray-Ban smart glasses draw attention and Meta has not commented on the layoffs.

History

Historical Context

The dot-com bubble burst in 2001 led to significant layoffs in tech companies like Cisco and Amazon, which saw stock declines exceeding 80%. In 2022, Meta Platforms, Inc. announced plans to cut 10% of its Reality Labs division, reflecting ongoing challenges in virtual reality adoption and a broader trend of layoffs across the tech industry, which has faced increased competition and economic pressures.

1 of 2

Story summary

Meta Platforms, Inc. plans to lay off about 10 percent of its Reality Labs division, which has around 15,000 employees.
The cuts follow a 30 percent budget reduction for the metaverse and reflect ongoing challenges in gaining traction for virtual reality.
Chief Technology Officer Andrew Bosworth called a crucial meeting for Wednesday to discuss the plan, as Ray-Ban smart glasses draw attention and Meta has not commented on the layoffs.

1 / 2