Meta is creating a new Applied AI Engineering Group in its Reality Labs Division to speed up how AI is added to products and infrastructure with a focus on generating revenue quickly. Vice President Maher Saba will lead the team, which reports to CTO Andrew Bosworth. The group aims to connect research and product development through a flat structure, enabling each manager to oversee up to 50 engineers to move faster.
Key Details of the Tactical Pivot
- Purpose: The goal is to make AI models faster and more efficient using real-world information and feedback. Meta aims to create a cycle in which models continually improve across social platforms, smart glasses, and Meta AI.
- The group comprises two teams: One develops internal tools and interfaces. The other manages data pipelines, model evaluation, and oversight.
- The Applied AI team will collaborate with the Meta Super Intelligence Lab, led by former Scale AI CEO Alexander Wang, to accelerate the development of models such as Avocado for text and Mango for images and video.
- This shift prioritizes immediate AI monetization, using data to improve ad targeting and engagement across Meta’s platforms, as well as to support AI-powered wearable products.
- This pivot comes after Reality Labs’ major losses and aligns with Meta’s planned significant AI computing investments for 2026, marking a shift from metaverse to AI-powered wearables.
This reorganization demonstrates that AI will drive all of Meta’s future products.
On January 14, Meta laid off more than 1000 employees from its Reality Labs division. This is about 10% of its workforce. The layoff is part of a shift away from VR and metaverse projects. Meta will now focus on AI, Power Variables, and several VR game studios will be closed immediately as a result. The company is making these changes to address Reality Labs’ losses, which have topped $70B since 2021.
On January 14, Meta announced a major shift in direction, laying off over 1,000 employees in its Reality Labs division as it moves away from its Metaverse focus. The cutback signals a clear transition within the company from Metaverse to AI-powered wearables and mobile technology initiatives.
Workforce Reduction Details
The layoffs affect about 10% of Reality Labs’ staff, with a spokesperson stating they are part of a broader plan to re-evaluate resources.
This is part of that effort. We plan to reinvest the savings to support the growth of wearables this year. The spokesperson told Bloomberg the company had previously indicated this tactical shift in December.
Strategic Change From VR To Wearables
This represents a significant change from Meta’s previous Metaverse focus, which began during the pandemic and led to the rebranding from Facebook to Meta in October 2021. Reality Labs has since lost more than $70B.
In an internal memo, CTO Andrew Bosworth said Meta wants to be more eco-friendly by moving its Metaverse investments towards mobile devices and cutting back on virtual reality spending. In December, the company had already announced plans to focus more on wearables than on the Metaverse.
Gaming Operations Severely Impacted
The restructuring has hit. Meta gaming plans are leading to the immediate shutdown of several VR gaming studios. The studios closed are Armichag, Sanzuru, and Twisted Pixel.
The VR fitness app Supernatural will keep supporting its current features. However, new content and updates are on hold. Despite the closure, Tamara Sciamanna, director of Oculus Studio, stressed in an internal memo that gaming is still important to the company.
Gaming remains the cornerstone of our ecosystem. With this change, we are shifting our investment to focus on our third-party developers and partners. This will guarantee long-term sustainability, she reportedly wrote.
Previous Personnel Changes
This is the latest round of job cuts at Reality Labs in April 2025. Meta also laid off staff working on the VR fitness game Supernatural. It did not share how many people were affected.
This restructuring marks Reality Labs’ biggest step back from Metaverse projects. Meta is reallocating the Divisions’ resources as it pursues opportunities in the AI wearables market while seeking greater economic stability.
Source: Meta Platforms Cuts Over 1,000 Reality Labs Jobs as Company Pivots from VR to AI Wearables
