Meta to cut about 1,500 jobs in Reality Labs as – Business News
Meta is getting ready to cut about 1,500 workers from its Reality Labs division — roughly 10% of the unit’s 15,000-person workforce — as early as this week as the company pivots arduous towards artificial intelligence.
The cuts are anticipated to hit groups engaged on virtual-reality headsets and Meta’s VR-based social community, even as executives pour billions into AI analysis, knowledge facilities and smart-glasses development, in accordance to the New York Times.
Bosworth has referred to as an all-hands assembly for Wednesday and urged workers to attend in individual, describing it internally as the “most important” assembly of the 12 months, people acquainted with the message informed Business Insider.
Meta is alleged to be getting ready to cut roughly 10% of its Reality Labs workforce, with layoffs anticipated to hit groups engaged on virtual-reality headsets and its VR-based social community. NurPhoto by way of Getty Images
Reality Labs, which employs roughly 15,000 people, has been a persistent drag on Meta’s funds, racking up more than $70 billion in losses since 2020 as shopper demand for virtual-reality headsets has lagged.
The looming layoffs come as CEO Mark Zuckerberg has ordered prime executives to rein in 2026 budgets whereas he pours tens of billions of {dollars} into artificial intelligence, together with expanded funding for Meta’s skunkworks TBD Lab, which is tasked with building what he has described as “superintelligence.”
To workers the trouble, Meta has been handing out lavish compensation packages to lure prime AI researchers and engineers, whereas additionally hanging expensive offers to speed up its ambitions.
In 2025, the company invested $14.3 billion in Scale AI and introduced on its chief government, Alexandr Wang, as half of a broader reset of Meta’s AI strategy.
Meta additionally made a splashy guess on AI late final 12 months with its more than $2 billion acquisition of Manus, a fast-growing AI agent startup.
Reality Labs has racked up more than $70 billion in losses since 2020, fueling investor stress and a broader restructuring at Meta. Getty Images
Meta has additionally overhauled its worker review and bonus system, unveiling a new efficiency program referred to as Checkpoint that sharply will increase payouts for prime performers, in accordance to inner paperwork obtained by Business Insider.
Under the new system, a small group of standout workers might be eligible for bonuses value up to 300% of their base payout, a dramatic escalation designed to reward what the company calls “truly exceptional impact.”
The Checkpoint program collapses Meta’s sprawling review course of into 4 efficiency tiers, with roughly 20% of workers labeled “Outstanding” and eligible for double their base bonus, whereas about 70% are anticipated to land in an “Excellent” class with a 115% multiplier.
Meta CEO Mark Zuckerberg is pushing tens of billions of {dollars} into artificial intelligence. REUTERS
Workers deemed to “Not Meet Expectations” will obtain no bonus in any respect, reinforcing a sharper efficiency curve as Meta tightens requirements throughout the company.
The modifications, which take impact in mid-2026, observe Zuckerberg’s push to harden Meta’s efficiency tradition after a 12 months of layoffs and inner stress to do more with fewer people.
The company has stated the new system is supposed to cut back forms and free up time, however the timing has fueled anxiousness amongst workers as Meta concurrently cuts jobs and indicators that pay, promotions and survival will more and more hinge on measurable affect.
The Post has sought remark from Meta.
