Meta to Cut Over 1,000 Reality Labs Jobs, Shifts Focus to AI

• Meta plans to lay off over 1,000 employees from its Reality Labs division, impacting about 10% of the unit.
• The job cuts are part of a strategic pivot by CEO Mark Zuckerberg to prioritize artificial intelligence development.
• Teams working on VR headsets and social platforms are expected to be most affected, while AR hardware teams may be largely spared.
• Meta is reallocating funding from traditional VR products to its wearables business, including AI-powered smart glasses.
• The company faces pressure from AI rivals like OpenAI and Google, making AI Meta's top strategic bet.

Why It Matters: Meta is significantly reducing its Reality Labs workforce to reallocate resources and focus on AI development.