Meta announced a 10% workforce reduction in its Reality Labs division, which has accumulated losses of approximately 67.7 billion USD over the past five years, according to a New York Times report on Monday.
The Reality Labs division reportedly employs around 15,000 people.
Reality Labs is Meta’s metaverse-focused arm, which the company has been developing since acquiring Oculus in 2014.
Chief Executive Officer (CEO) Mark Zuckerberg has championed the metaverse as Facebook’s future, even rebranding the company to Meta in 2021.
However, from early 2021 to the end of last year, Reality Labs reportedly incurred a staggering cumulative operating loss of 70 billion USD .
In November, Zuckerberg ordered a 30% budget cut for metaverse projects during a 2026 budget meeting, while increasing funding for the artificial intelligence (AI) research group, To Be Determined (TBD).
Notably, the augmented reality (AR) device team within Reality Labs is reportedly exempt from these layoffs. This division is developing next-generation wearables, including smart glasses and AI-enabled bands.
Meta’s smart glasses, Meta Ray-Ban Stories, launched in collaboration with Ray-Ban last September, are currently gaining traction in the U.S. market.
In other news, Meta appointed Dina Powell McCormick, a former deputy national security advisor in Donald Trump administration, as its new president and vice chair on January 12.
McCormick, wife of Senator Dave McCormick (R-PA), served as deputy national security advisor from 2017 to 2018 under Trump and as assistant secretary of state during the George W. Bush administration.
In her new role at Meta, McCormick will work with the computing and infrastructure teams to develop investment strategies and spearhead new strategic partnerships.
President Trump praised McCormick on Truth Social, calling her a great choice by Zuckerberg and lauding her as a remarkable and talented individual who contributed with strength and excellence to the Trump administration.