Meta is launching a new internal reorganization process that directly involves Reality Labs, its virtual reality division, and the Metaverse. According to Bloomberg, the company has begun cutting over 1,000 jobs within the department, marking a shift in focus toward the development of AI-powered wearables, specifically the Ray-Ban Meta smart glasses.
The decision was formalized in an internal memo signed by Chief Technology Officer Andrew Bosworth, which outlines a strategy that scales back the central role of virtual reality in favor of lighter solutions integrated with the mobile ecosystem. The stated goal is to focus resources and investments on products with a potentially larger user base and faster adoption prospects.
Reality Labs ‘ downsizing isn’t unexpected. Since 2021, when Mark Zuckerberg announced the group’s rebranding with a strong focus on the Metaverse, the division has accumulated losses exceeding $70 billion. Despite the strong commercial success of the Quest headsets , the revenue generated hasn’t been enough to offset the high research, development, and operating costs.
The changing technological and financial landscape has helped accelerate this shift. The growth of generative artificial intelligence and growing pressure from investors have forced Meta to rethink its vision, which, until now, has suffered from the lack of a leading application and limited deployment of VR hardware . In this scenario, the concept of ” mobile ” takes on a broader meaning, encompassing not only smartphone apps but also wearable devices designed to integrate with everyday use.
In the internal document , Bosworth emphasizes how the reallocation of resources towards the mobile dimension responds to more favorable growth figures and a significantly larger user base. Ray-Ban Meta glasses, equipped with cameras, audio systems, and AI-based assistants, thus become the centerpiece of the new hardware strategy, thanks to a combination of portability and practical features.
The virtual reality segment isn’t being abandoned entirely, but it will be handled with a more contained approach. According to the CTO, the VR unit will operate more streamlined, following a selective product roadmap geared towards long-term sustainability. This could translate into a slowdown in the development of new high-end headsets, impacting the timing of any successors to the Quest 3 or a new version of the Pro line.
In recent years, Meta has invested in building highly immersive virtual environments, but market developments suggest a more immediate demand for tools capable of enriching physical reality through artificial intelligence. The positive response to Ray-Ban Meta glasses represents a turning point in this regard: rather than pushing users toward fully digital worlds, the company aims to overlay intelligent information and services into everyday experiences.
The Metaverse, therefore, is not archived, but reinterpreted.
Access is no longer limited to VR headsets, but rather to AI wearables designed for continuous and discreet use . For Meta, this is a pragmatic choice, allowing them to accelerate the monetization of AI while simultaneously reducing Reality Labs’ financial impact, meeting shareholder expectations.
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