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The Latest Breaking News from Reality Labs

Meta wows Wall Street despite spending billions on AI and facing social media addiction trial

Firm’s fourth-quarter 2025 beat expectations as it lavishes investment on AI infrastructure and CEO faces questioning

The Guardian - US

Meta had a record year in 2025, yet the company plans to spend even more money in 2026 despite massive Reality Labs restructuring

Meta's Q4 2025 was the company's strongest quarter yet, ending an impressively successful financial year but raising questions about 2026 spending.

Android Central

'We're going to let VR be what it is and what it does great,' says Meta execs regarding Quest changes

Last week's layoffs of 1,500 Reality Labs employees shocked the Meta Quest community, and now Meta is finally explaining what's going to happen next.

Android Central

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‘We’re going to let VR be what it is’ Meta CTO Andrew Bosworth addresses the major VR layoffs – and teases a new direction for the metaverse

Meta CTO Andrew Bosworth has explained the company's new approach to VR, the metaverse, and XR glasses.

TechRadar

Facebook's Meta rebrand can finally be called a disaster

RIP the metaverse.

Creative Bloq

"I can tell you personally that we are not getting out of VR," says Meta Developer Advocate just one week after the brand laid off more than 1,000 Reality Labs employees

One Meta employee has broken silence on X, saying that the company isn't abandoning VR entirely despite mass layoffs to the brand's Reality Labs workforce.

GamesRadar

Meta abandoning VR is 'obviously false,' according to Oculus founder, but Meta's own actions scream the opposite

With Meta laying off a large portion of its VR department in favor of smart glasses, Oculus founder Palmer Luckey believes "this isn't a disaster," but upcoming Quest headsets aren't looking bright.

Tom’s Guide

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Meta Lays Off Around 1,500 VR Workers Following Failure to Turn Profit

Around 1,500 workers under Meta's Reality Labs division have been laid off as part of Meta's shift away from VR and to AI.

International Business Times UK

ICYMI: the week's 7 biggest tech stories like Apple losing to Google, and Meta giving up on VR

The biggest tech news stories from Meta, Amazon, Apple, and more for January 17, 2026.

TechRadar

Meta Reduces Reality Labs Workforce While Pivoting to AI-Powered Glasses

Meta cuts over 1,000 Reality Labs jobs to focus on AI-powered smart glasses and mobile metaverse experiences.

International Business Times

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

Armature Studios, Sanzaru Games, and Twisted Pixel are done for.

PC Gamer

Meta is reportedly slashing another 1,500 jobs, and it looks pretty bad for Meta Quest exclusives

Reality Labs is reportedly seeing a 10% staff cut, mainly targeting VR development.

Android Central

Meta Slashes Metaverse Jobs and Names Ex-Trump Adviser Dina Powell McCormick President

Meta has appointed former Trump adviser Dina Powell McCormick its new president and vice chairman as the social media titan faces apparent leadership overhaul geared towards AI infrastructure

International Business Times UK

Meta's $70B Metaverse Black Hole Signals Tech Bubble Warning — Is AI the Next Wipeout for Your Portfolio?

Meta cuts metaverse budget by 30% after losing over $70B since 2021. With AI spending set to surge in 2026, should investors brace for another costly gamble?

International Business Times UK

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Android Central

Meta's Quest 4 shift: Reality Labs is reportedly cutting the fat in a move to prioritize gaming. Here's why that's best for everyone

Big changes at Meta Reality Labs and the Metaverse division, new hires, and fresh leaks point to a very big future for VR and beyond.

Barchart

Could Meta Stock Skyrocket in 2026 If Mark Zuckerberg Declares Another ‘Year of Efficiency’?

Meta is looking to cut its metaverse spending by as much as 30% next year. Could it work wonders for the stock as the "year of efficiency" did in 2023?

International Business Times UK

The $70B Wake-Up Call: Zuckerberg Finally Concedes the Metaverse Isn't What He Promised

Mark Zuckerberg's private concession that the metaverse 'isn't working' follows more than $70bn in losses and triggers a dramatic strategic shift toward AI superintelligence.

MarketBeat

Zuckerberg Eyes Metaverse Cuts: Why META Is Rightfully Rallying

The metaverse simply hasn't panned out. Markets are becoming more optimistic on Meta Platform's future as it ponders big cuts to this disappointing initiative.

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International Business Times UK

From Future of the Internet to Total Flop: Mark Zuckerberg Cuts Metaverse After Sims-Level Graphics Mockery

Mark Zuckerberg scales back Meta's metaverse ambitions after £57 billion ($70 billion) investment falls flat, cutting spending and refocusing on AI and core apps.

Benzinga

Meta Preps Major Metaverse Cuts, Analysts Predict Earnings Pop

Wall Street analysts rerated Meta Platforms Inc (NASDAQ:META) after the company said that it is considering cutting up to 30% of its 2026 Metaverse budget, primarily targeting the Quest virtual reality unit and Horizon Worlds, which account for the bulk of metaverse-related investment.

Fortune

Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on

Zuckerberg once framed the metaverse as the “successor to the mobile internet.”

Barchart

Meta Platforms Has Lost $73 Billion on Reality labs. Are Its Spending Cuts Enough for META Stock?

Meta cuts Reality Labs spending by 30%, focusing on profitable AI and core app projects while maintaining ad growth.

International Business Times UK

Zuckerberg Axes Metaverse: Meta Slashes Budget By £52 Billion As VR Dream Implodes

Meta is preparing to slash up to £52 billion from its Metaverse budget as Mark Zuckerberg shifts Facebook's parent company toward artificial intelligence, signalling significant possible job cuts.

International Business Times UK

Alan Dye Leaving Apple — What Meta's New Design Chief Means for Future AI Glasses

Former Apple design chief Alan Dye has moved to Meta to lead design for its Reality Labs, a major Silicon Valley talent shift.

Benzinga

Gene Munster Says It Won't Be A 'Wearables Holiday' For Meta, Analyst Says Company's AI On Display Glasses Crushed By ChatGPT In Side-By-Side Test

On Wednesday, Deepwater Asset Management's Gene Munster said he still believes in Meta Platforms Inc.'s (NASDAQ:META) massive investment in Reality Labs, but a head-to-head test left him convinced the company's newest AI tools lag far behind ChatGPT.

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Dina Powell McCormick

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