Meta Layoffs: 1,500 jobs at risk as CTO calls crucial all-hands meeting for employees

Meta is set to cut nearly 1,500 jobs from its Reality Labs division as the company pivots sharply toward artificial intelligence and large-scale data centre investments.

In a significant shift of priorities, Meta Platforms Inc. is preparing to cut around 1,500 jobs from its Reality Labs division – the company’s unit charged with building virtual and augmented reality experiences – even as it doubles down on artificial intelligence and large-scale data-centre expansion.

Sources familiar with the plans say the layoffs could affect roughly 10% of Reality Labs’ workforce, which totals about 15,000 employees. The move underscores a growing realignment within Meta as CEO Mark Zuckerberg pivots resources toward AI initiatives that promise faster momentum and broader commercial gains.

‘Most Important’ Meeting Sparks Internal Buzz

Adding to the tension, Meta’s Chief Technology Officer (CTO), Andrew Bosworth, has scheduled what he describes as the “most important” all-hands meeting of the year for Reality Labs employees, asking staff to attend in person – a rare directive for a unit that typically embraces remote work flexibility.

Internal messages seen by media outlets emphasize the critical nature of the meeting, which is expected to take place just a day after the job cuts are announced. Employees have been told to prioritize attendance even over ongoing work tasks, signaling the seriousness of the moment within the division.

Metaverse Dreams vs. AI Realities

Reality Labs was once the jewel of Meta’s futuristic ambitions. It grew out of Oculus, the virtual-reality headset startup acquired by Facebook in 2014, and went on to build VR hardware like Quest headsets, the Horizon Worlds social platform, and AR wearables including Ray-Ban smart glasses.

But despite those innovations, the division has struggled financially. Reports show Reality Labs has accumulated tens of billions in losses over recent years, prompting repeated budget reductions and staffing trims.

Meanwhile, Meta has been catapulting investment into AI – a domain generating faster returns and strategic relevance as competitors like Google and OpenAI dominate the field. Last week, the company unveiled plans to build massive data-centre capacity under its Meta Compute initiative, envisioning “tens of gigawatts” of computing power to support next-gen AI models.

Leadership Shuffle and Future Focus

Amid the strategic shift, Meta also appointed Dina Powell McCormick – a seasoned executive with experience in government and finance – as its new President and Vice Chairperson, a move analysts see as strengthening the company’s policy and global outreach efforts during an era of rapid transformation.

In public remarks, Zuckerberg framed the AI infrastructure build-out as a “strategic advantage” that will power Meta’s future growth – a sign that the company is moving on from its once-hyped metaverse obsession toward technologies that resonate more directly with enterprise computing and generative AI markets.

Reality Labs at a Crossroads

For employees inside Reality Labs, the cuts and leadership signals have intensified uncertainty about the unit’s future. What was once a centerpiece of Meta’s vision is now confronting a classic pivot point: innovate boldly or retrench for relevance in a world where generative AI is stealing the spotlight.