Meta Cuts Over 1,000 Jobs in Reality Labs, Signals Strategic Retreat from Metaverse

KuCoinFlash

Release Time: 01/14/2026 06:34:41

Summary

On January 14, 2026, Meta announced that it has started laying off more than 1,000 employees in its Reality Labs division, representing a 10% reduction in the team. Affected employees began receiving notices the same Tuesday. The company is shifting its focus from metaverse products to wearable devices, particularly AI-powered smart glasses. Reality Labs has reported cumulative operating losses exceeding $70 billion since 2021, with a $4.4 billion loss in the third quarter of the 2025 fiscal year alone. On-chain analysis indicates continued investor skepticism toward metaverse-related assets.

BlockBeats News: On January 14, according to Fox Business, Meta is planning a new round of layoffs in early 2026, primarily targeting its Reality Labs division (responsible for VR/AR hardware and metaverse projects). This move marks a significant strategic retreat from Mark Zuckerberg's ambitious "metaverse" vision, which he strongly promoted since 2014. Meta will cut 10% of Reality Labs' workforce, equivalent to more than 1,000 positions. Affected employees have been receiving notifications starting from Tuesday of this week.

Meta is shifting its focus from metaverse products to wearable devices, particularly AI-powered smart glasses. Its metaverse initiatives have suffered significant long-term losses, with Reality Labs incurring over $70 billion in cumulative operating losses since 2021. The division alone lost $4.4 billion in the third quarter of the 2025 fiscal year.

Source:Show original

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.