Meta is set to lay off more than 1,000 employees in its Reality Labs division, marking a strategic retreat from its metaverse ambitions. The layoffs, representing 10% of the division's workforce, are part of a broader shift towards AI-powered wearable devices, including smart glasses. This decision comes as Reality Labs has faced substantial financial losses, with over $70 billion in cumulative operating losses since 2021 and a $4.4 billion loss in Q3 2025 alone. Affected employees began receiving notifications earlier this week.