Meta to cut about 1,500 jobs in Reality Labs as Mark Zuckerberg doubles down on AI

Group 1 - Meta is preparing to cut about 1,500 employees from its Reality Labs division, which represents roughly 10% of the unit's 15,000-person workforce, as the company shifts focus towards artificial intelligence [1][6] - The layoffs are expected to impact teams working on virtual-reality headsets and Meta's VR-based social network, despite the company investing billions into AI research and development [1][4] - Reality Labs has incurred over $70 billion in losses since 2020, contributing to financial pressure on Meta and prompting a broader restructuring [3][8] Group 2 - CEO Mark Zuckerberg has mandated top executives to reduce 2026 budgets while investing tens of billions into artificial intelligence initiatives, including funding for Meta's TBD Lab aimed at developing "superintelligence" [4][11] - Meta has been offering substantial compensation packages to attract top AI researchers and engineers, alongside making significant acquisitions to bolster its AI strategy, such as the $14.3 billion investment in Scale AI and the $2 billion acquisition of Manus [5][4] - The company has introduced a new performance program called Checkpoint, which increases bonuses for top performers, with standout employees eligible for bonuses up to 300% of their base payout [9][11]