Meta cuts over 1,000 Reality Labs jobs and closes VR studios after $70B losses

In the week of January 14, 2026, Meta began eliminating more than 1,000 roles, or about 10% of its Reality Labs workforce, and shutting several VR game studios after the division accumulated over $70 billion in losses since 2020. The company is reallocating billions in spending from VR to AI and Ray-Ban-branded smart glasses, even as it keeps pushing Horizon Worlds toward mobile platforms despite modest user numbers and weak VR headset sales.