Meta has shut down its significant metaverse operations, cutting over 1,000 jobs within Reality Labs and closing three VR game studios amidst a strategic shift announced in early 2026.
This decision redirects investments from metaverse initiatives to AI-powered wearables, suggesting a major focus shift impacting Meta’s technological trajectory but leaving cryptocurrency markets unaffected.
Meta has announced a strategic shift from Metaverse projects to AI-powered wearables, affecting over 1,000 jobs and reshaping its business focus.
The change mirrors Meta’s pivot towards developing a more sustainable business model amidst significant financial setbacks at Reality Labs, influencing both VR studios and the broader tech landscape.
Meta Cuts Metaverse Projects, 1,000 Jobs at Stake
Meta has decided to discontinue its metaverse initiatives, resulting in over 1,000 job losses. This move shifts the focus to AI-powered wearables, marking a significant pivot for the company.
Key players include Andrew Bosworth, who announced the layoffs. Meta aims for a “more sustainable business” by reinvesting in wearables. Reality Labs experienced substantial operating losses, prompting these strategic changes.
VR Studios Hit as Meta Shifts to Wearables
The shutdown impacts several VR game studios within Meta, indicating a strategic shift. Job cuts sparked reactions from former employees on LinkedIn, highlighting the closure’s influence on the VR gaming landscape.
Meta’s focus on AI wearables might reshape the technology landscape. This decision, marked by substantial financial losses at Reality Labs, may lead to innovation in AI smart glasses, potentially altering market dynamics.
From Metaverse Rebranding to AI Innovation
Compared to Meta’s 2021 rebranding to emphasize metaverse efforts, this recent shift signifies a clear departure. The bold transformation indicates changing strategies to align with evolving tech trends.
Despite the shift, crypto experts articulate that the event functions primarily within the tech industry’s scope. No immediate cryptocurrency implications are anticipated, reflecting broader market and technological adaptation insights.
“We are shifting investments from Metaverse toward Wearables to build a more sustainable business.” – Andrew Bosworth, Chief Technology Officer (CTO), Meta
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