Bosworth Unit Reduction Signals Meta’s Shift From Metaverse to AI
Meta has confirmed a Bosworth unit reduction, cutting 10% of staff from its Reality Labs division. The move signals a sharper focus on artificial intelligence in 2026. It also raises fresh questions about the future of virtual reality projects.
Reality Labs develops Quest headsets, smart glasses, and virtual worlds. However, the division continues to post heavy losses. As a result, leadership is now tightening costs.
According to reports, these layoffs could affect more than 1,500 roles. The changes may be announced after an internal staff meeting this week. That meeting will outline the updated roadmap for the unit.
Why Meta Is Rethinking Reality Labs
Executives say the Bosworth unit reduction supports a broader AI strategy. AI tools now automate tasks once handled by large engineering teams.
Therefore, fewer staff may be needed for VR development.
Meta’s CEO has openly discussed AI replacing mid-level engineers. For example, AI can already generate virtual objects using text prompts. This capability directly impacts how VR products get built.
Despite the cuts, Meta is not abandoning immersive technology. Sales of smart glasses and headsets continue to grow steadily.
In fact, Reality Labs revenue rose 40% in 2024. Still, the division has cost over $70 billion in six years.
At the same time, Meta is investing billions in AI data centers.
Because of this pressure, the Bosworth unit reduction became unavoidable. Looking ahead, AI will likely shape every future product. Meta appears willing to shrink teams to fund that vision.
Only time will show if this gamble pays off.
