Meta is closing 3 VR studios and laying off roughly 10% of Reality Labs as it shifts focus from the metaverse to AI wearables, it's next sure-fire, can't-miss idea

Meta chief technology officer Andrew "Boz" Bosworth said early in 2025 that the metaverse could be a "legendary misadventure" if the company's Reality Labs division didn't turn things around that year in a big way. Well, here we are in 2026, and it looks like the mission was not accomplished: Bloomberg says Meta is beginning layoffs of more than 1,000 Reality Labs employees and closing three development studios as it shifts attention from VR and the metaverse to its next big idea, AI wearables and phone features.