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Meta Shifts Focus: VR Layoffs Amid AI Push

1/27/2026

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Summary

Story summary

Meta's Chief Technology Officer Andrew Bosworth acknowledged a "lack of focus" in the metaverse strategy that harmed Quest user experience.
Speaking at the World Economic Forum, Meta announced a Reality Labs reorganization and layoffs totaling 10% of the team, with experts warning the shift could slow VR growth.
The company will focus on artificial intelligence (AI) and smart glasses while scaling back VR, including the closure of three VR studios.

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Story summary

Meta's Chief Technology Officer Andrew Bosworth acknowledged a "lack of focus" in the metaverse strategy that harmed Quest user experience.
Speaking at the World Economic Forum, Meta announced a Reality Labs reorganization and layoffs totaling 10% of the team, with experts warning the shift could slow VR growth.
The company will focus on artificial intelligence (AI) and smart glasses while scaling back VR, including the closure of three VR studios.