Meta to cut about 1,500 jobs in Reality Labs as Zuckerberg doubles down on AI | Latest Tech 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 exhausting toward artificial intelligence.
The cuts are anticipated to hit groups working on virtual-reality headsets and Meta’s VR-based social community, even as executives pour billions into AI research, data facilities and smart-glasses development, according to the New York Times.
Bosworth has called an all-hands assembly for Wednesday and urged workers to attend in particular person, describing it internally as the “most important” assembly of the yr, people acquainted with the message told Business Insider.
Meta is said to be getting ready to cut roughly 10% of its Reality Labs workforce, with layoffs anticipated to hit groups working on virtual-reality headsets and its VR-based social community. NurPhoto via 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 client demand for virtual-reality headsets has lagged.
The looming layoffs come as CEO Mark Zuckerberg has ordered top executives to rein in 2026 budgets while he pours tens of billions of {dollars} into artificial intelligence, including 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 top AI researchers and engineers, while also placing pricey 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 also made a splashy wager on AI late last yr 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 also overhauled its worker review and bonus system, unveiling a new efficiency program called Checkpoint that sharply will increase payouts for top performers, according to inside paperwork obtained by Business Insider.
Under the new system, a small group of standout workers will likely be eligible for bonuses price 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, while 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 at all, reinforcing a sharper efficiency curve as Meta tightens requirements across the company.
The adjustments, which take impact in mid-2026, comply with Zuckerberg’s push to harden Meta’s efficiency tradition after a yr of layoffs and inside stress to do more with fewer people.
The company has said the new system is supposed to scale back forms and free up time, but the timing has fueled anxiety among workers as Meta concurrently cuts jobs and alerts that pay, promotions and survival will more and more hinge on measurable impression.
The Post has sought remark from Meta.
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For recent insights, professional coverage, and trending tech updates, go to us commonly by clicking right here.
