The layoffs, confirmed by Meta and reported by multiple outlets, include more than 1,000 roles and the closure of several VR studios, narrowing the company’s metaverse focus. What Meta’s January 2026 Reality Labs cuts mean for AR users• Meta confirmed layoffs on Jan. 12, 2026; impact: roughly 10% of Reality Labs staff. Why this week’s Reality Labs shift hits hardware partners and startupsMeta’s decision arrives just after a year of heavy hardware promises, and the timing compresses product calendars for partners. Which industry voices are reacting to the Reality Labs cuts this week? The data that shows why Meta is pivoting from metaverse bets to AIReality Labs had ballooned after years of investment despite uneven returns; Reality Labs losses ran in the billions historically.

Source: Wall Street Journal January 17, 2026 23:15 UTC