No date set for Meta cuts, magnitude not finalized: Reuters

Meta is reportedly navigating a strategic recalibration, with potential workforce reductions and budget adjustments under consideration, though specific timelines and magnitudes remain unconfirmed. According to recent reports, the company could cut approximately 10% of its Reality Labs division, which employs around 15,000 staff and focuses on metaverse initiatives, virtual reality headsets, and augmented-reality products. These cuts, if finalized, would disproportionately impact teams working on metaverse-related projects, which have incurred over $60 billion in costs since 2020. Additionally, Bloomberg News reported in December 2025 that CEO Mark Zuckerberg is exploring reductions of up to 30% in metaverse-related budgets, signaling a broader reevaluation of resource allocation.

In parallel, Meta has implemented cost-control measures, including a 5% reduction in equity awards for most employees, as disclosed by the Financial Times in February 2026. These steps align with Zuckerberg's pivot toward artificial intelligence, a sector where Meta's recent Llama 4 model has faced mixed reception. While the company has seen modest success with its Quest headsets and smart glasses, the metaverse vision remains a financial challenge, with competitors like Google and Apple yet to establish significant market presence in augmented reality.

Meta has not officially confirmed the scope or timing of these adjustments, and internal communications suggest ongoing deliberations. Investors are closely monitoring how these moves will balance short-term cost discipline with long-term innovation goals in AI and hardware development.