Meta Platforms is laying off hundreds of employees across multiple teams this week as it redirects resources toward artificial intelligence, continuing a broader shift away from its metaverse-focused investments in the wave of Meta layoffs 2026.
Meta Cuts Jobs Across Key Business Units
The layoffs affect workers in recruiting, social media, sales, and Reality Labs, the division responsible for virtual reality headsets and smart glasses, according to multiple media reports.
Reports confirmed the cuts, though the company has not disclosed the exact number of affected employees.
“Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals,” spokesperson Tracy Clayton said in an emailed statement regarding Meta layoffs 2026. She added that the company is attempting to place impacted workers in other roles where possible.
Meta employed nearly 79,000 people as of December 2025, making the latest layoffs a relatively small but notable reduction within its global workforce.
AI Investments Drive Strategic Shift
The job cuts come as Meta significantly increases spending on artificial intelligence infrastructure during Meta layoffs 2026. The company is projected to invest up to $135 billion in building AI-focused data centers, with executives prioritizing AI development as competition intensifies across the tech industry, particularly in generative AI and large-scale computing systems.
Meta has also secured agreements to incorporate advanced processors into its infrastructure, signaling a long-term commitment to AI as a core business driver.
Analysts say the shift reflects a broader industry trend, where companies are reallocating resources from experimental or slower-growing divisions to high-demand technologies like AI.
Reality Labs Faces Continued Pressure
Reality Labs, once central to Meta’s metaverse ambitions, has seen repeated restructuring in recent months. The company laid off at least 1,000 employees in the division in January and shut down three virtual reality studios during the ongoing Meta layoffs 2026.
Meta has also scaled back several metaverse-related initiatives, including ending development on a workplace-focused virtual platform and halting new content for its VR fitness app, Supernatural.
In February, the company announced plans to shut down the VR version of its social platform Horizon Worlds, only to reverse the decision weeks later. The platform will remain available “for the foreseeable future,” according to the company.
Industry observers say these moves indicate Meta is deprioritizing its metaverse strategy in favor of more immediate revenue opportunities tied to AI.
Despite the changes, Meta has not fully abandoned virtual and augmented reality. The company continues to develop hardware products, though at a more measured pace.
