Meta's Reality Labs cuts sparked fears of a 'VR winter'

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’s deprioritizing virtual reality in favor of artificial intelligence and Internet-connected smart glasses has chilled the industry, leading to concerns about its future.

“I can see how it feels like a VR winter,” said Jessica Young, an independent VR content creator specializing in Horizon Worlds, Meta’s virtual social network.

The social media giant last week laid off 10% of employees who work within its Reality Labs unit, with the cuts centering on VR-related initiatives like the Quest VR headsets, CNBC reported. Teams working on Horizon Worlds were hit hard and some in-house studios were shuttered. Approximately 1,000 jobs were cut, CNBC reported.

The move was part of the company’s effort to redirect Reality Labs investments from VR to AI and wearable devices like the Ray-Ban Meta smart glasses that are co-produced with EssilorLuxottica, a spokesperson for the social media company said in a statement last week. Meta declined to comment further beyond its previous statement.