Meta To Slash Several Hundred Of Its Workforce Across Reality Labs As Focus Turns To AI Expansion: Report

• The move follows January’s reduction of 1,500 Reality Labs employees, roughly 10% of that unit.
• Despite the workforce adjustments, Meta continues recruiting specialized AI talent to strengthen its research and development efforts. 
• Meta is pivoting away from virtual reality and metaverse projects to concentrate on Meta Superintelligence Labs. 

Meta Platforms Inc. (META) is reportedly trimming several hundred of its workforce as part of a company-wide initiative to reorganize for the artificial intelligence era.

According to The Information’s report, the reduction will primarily affect staff within Reality Labs, the division responsible for Meta’s hardware and wearable products, as well as selected employees in social media, recruiting, and a smaller number in sales.

Restructuring History And Workforce Impact

This latest round of layoffs follows cuts earlier in January, when 1,500 employees in Reality Labs were let go, representing roughly 10% of that unit. Despite these reductions, Meta’s workforce adjustments remain targeted, and the company continues hiring specialized AI talent.

“Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals,” said a Meta spokesperson. 

Meta Platforms’ stock inched 0.8% higher on Wednesday morning. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory while message volume shifted to ‘high’ from ‘normal’ levels in 24 hours. 

AI Investment Driving Change

The layoffs coincide with Meta’s aggressive investment plans in artificial intelligence infrastructure. The company has projected capital expenditures between $115 billion and $135 billion in 2026, a sharp increase from from $72.22 billion in 2025, largely directed toward data centers and advanced computing systems.

Meta is looking to catch up with competitors like OpenAI, Anthropic, and Google. The company recently executed a licensing deal with startup Dreamer, bringing its staff, including co-founder Hugo Barra, into Meta Superintelligence Labs.

The company is pivoting from its virtual reality and metaverse initiatives to intensify AI development, focusing its efforts on Meta Superintelligence Labs.

META stock has declined by over 9% year-to-date. 

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