Meta Shifts Focus from Metaverse to AI, Cuts 1,500 Jobs in Reality Labs
Meta is reallocating resources from its metaverse ambitions to artificial intelligence, resulting in significant workforce reductions. The company will eliminate approximately 10% of its Reality Labs division—about 1,500 employees—as it pivots toward AI and wearables development.
Reality Labs, responsible for Meta's VR/AR projects including Horizon Worlds and hardware like Quest headsets, has accumulated over $70 billion in losses since inception. The cuts follow reports of potential 30% reductions in metaverse spending as user adoption fails to meet expectations.
The MOVE reflects broader industry trends favoring practical AI applications over speculative metaverse investments. While no direct cryptocurrency impact is stated, the shift may influence blockchain projects focused on virtual worlds or AI integration.
