Core Insights - Meta's Chief Technology Officer, Andrew Bosworth, has called an all-hands meeting for January 14, emphasizing its importance as the "most important" of the year [1] - The meeting will focus on Reality Labs, which oversees Meta's wearables, virtual and augmented reality initiatives, and a nascent robotics unit [2] - In-person attendance is being strongly recommended, with some managers urging employees to prioritize this meeting [2] Financial Performance - Reality Labs has incurred losses exceeding $70 billion since 2020, indicating the costly nature of this venture for Meta [3] - Budget cuts of up to 30% and potential job cuts in Reality Labs have been reported, reflecting ongoing financial challenges [5] Strategic Shifts - In 2025, Meta shifted its strategic focus from the metaverse to AI, investing $14.3 billion in Scale AI and hiring its CEO, Alexandr Wang [4] - This strategic pivot included a multibillion-dollar hiring spree aimed at attracting top-tier AI talent from competitors [4] Organizational Changes - Reality Labs has undergone multiple rounds of cuts, including layoffs in Oculus Studios and a broader reduction of nearly 4,000 roles companywide in January 2025, with at least 560 affecting Reality Labs [6] - Bosworth has described 2025 as "the most critical" year in his tenure, suggesting significant pressure on the division to deliver results [6] Future Outlook - Bosworth indicated that the current year will determine whether the efforts in Reality Labs will be viewed as visionary or a misadventure, highlighting the high stakes involved [7]

Core Insights - Meta is planning budget cuts of up to 30% in its Reality Labs division, which may lead to job cuts affecting employees working on Horizon Worlds [1][3] - The company has faced over $60 billion in losses in Reality Labs since 2020 and is increasing its AI spending amid a competitive landscape [4] - Meta's stock rose by 4%, adding $69 billion to its market cap, following news of the budget cuts [4] Budget Cuts and Job Uncertainty - The potential budget cuts are part of a broader strategy discussed by CEO Mark Zuckerberg with executives [2] - Employees are uncertain about whether cost reductions will lead to layoffs, with most cuts expected to come from operating expenses rather than salaries [3] Organizational Changes - Meta has previously reorganized its metaverse unit, appointing new leaders for its metaverse efforts [5] - Vishal Shah, a key figure in Meta's metaverse initiatives, is transitioning to a different division, while Apple design leader Alan Dye has been hired to lead a new creative studio [6] Previous Restructuring Efforts - In April, Meta cut an undisclosed number of Reality Labs employees as part of a restructuring, affecting its gaming division and VR fitness app team [7] - The company has emphasized the need to drive sales and engagement, particularly in mixed reality, to ensure the long-term success of its metaverse plans [8] Investor Scrutiny - The significant losses in Reality Labs have raised concerns among investors, with analysts questioning when these losses might decrease [8]

Core Insights - Meta has laid off employees in its Reality Labs division, specifically affecting Oculus Studios, which develops applications and games for Meta's Quest headsets [1][2] - The layoffs are part of a restructuring aimed at improving efficiency in developing mixed reality experiences while continuing to deliver content [2] - Reality Labs has incurred significant financial losses, reporting nearly $5 billion in losses in Q4 2024 against $1 billion in sales, with ongoing annual operating losses since the rebranding from Facebook [2] Employee Impact - The number of employees affected by the layoffs has not been disclosed, but it includes those working on the VR exercise app Supernatural, which was acquired by Meta in 2023 [1][2] - Laid-off employees will have the opportunity to apply for other positions within the company [3] - The layoffs will result in fewer new workouts being produced weekly for Supernatural, although the workouts will be available at a wider variety of skill levels [3]