Meta is reportedly cutting another 1,500 jobs from its Reality Labs division. This move, representing a 10% workforce reduction, specifically targets employees working on VR headsets and the struggling Horizon Worlds social network. According to a New York Times report, the company is shifting resources away from its metaverse gaming ambitions after Horizon Worlds failed to gain traction against competitors like Roblox and Fortnite, despite expanding to PC and mobile platforms.

These layoffs follow budget reductions in December 2025, which already signaled a pivot toward AI and smart glasses. Reality Labs has burned through billions quarterly, drawing investor criticism. While Meta Quest headset sales performed well during the 2025 holidays, the social platform remained a money pit.

Chief Technology Officer Andrew Bosworth is scheduled to address the changes in a major meeting next week. Meta is now shelving plans to license its Horizon OS to third parties, choosing instead to focus on premium, first-party hardware. The company is developing an ultralight headset resembling smart glasses for release in 2026 or 2027.