Core Viewpoint - Meta is planning to lay off approximately 1,500 employees, or 10% of its Reality Labs division, as part of a strategic shift towards AI and away from the metaverse, which has been a significant financial burden for the company [1][3][7]. Group 1: Company Restructuring - Meta's Reality Labs division will be restructured into two departments: the metaverse and wearables, with the metaverse department primarily focusing on VR headsets and virtual social platforms [3][12]. - The layoffs are primarily targeting the metaverse department, with funds saved redirected towards AI wearable devices [3][13]. - As of now, Meta employs approximately 78,000 people, with Reality Labs accounting for about 19% of the workforce [2][3]. Group 2: Financial Performance - Reality Labs has been experiencing significant losses, with quarterly losses exceeding $3.7 billion since Q3 2023, and cumulative losses reaching approximately $70 billion over five years [3][7]. - In Q4 2024, Reality Labs is projected to incur a loss of nearly $5 billion, contributing to a total loss of about $13.2 billion in the first three quarters of 2025 [3][4]. - The revenue from Reality Labs has been declining, with Q1 2025 revenue reported at $412 million, a 6.36% decrease from the previous year [10]. Group 3: Shift in Strategic Focus - Meta's CEO Mark Zuckerberg has increasingly shifted focus from the metaverse to AI, indicating a strategic pivot in the company's priorities [6][17]. - The company is investing in AI technologies, including the development of AI glasses and other advanced AI models, as part of its new strategic direction [13][16]. - The introduction of AI glasses, such as the Ray-Ban Meta, has seen significant sales growth, with expectations of reaching 1 million units by the end of 2026 [14][16].