Meta to Cut Metaverse Staff, Redirect Savings to AR Glasses
Meta Platforms is planning layoffs in a branch of its Reality Labs metaverse team, potentially affecting 10%–30% of staff, sources told The New York Times. The affected group focuses on VR headsets and VR-based social networking. Management expects to reallocate savings from the cuts toward augmented reality (AR) glasses and related wearable projects. Reality Labs comprises the metaverse division and a wearables unit; Meta previously partnered with Ray-Ban on AR glasses in 2021 and said sales have exceeded internal targets. Executives are reassessing metaverse investment and considering significant reductions in VR-related roles. The move signals a shift in corporate priorities from broad metaverse spending to more targeted AR hardware development. Key keywords: Meta, Reality Labs, metaverse, VR layoffs, AR glasses, cost cuts, wearables.
Neutral
This announcement is primarily an internal corporate restructuring and product-priority shift rather than a direct crypto or blockchain development. For crypto markets, the impact is likely neutral: Meta reducing metaverse (VR) staffing could slow some investor enthusiasm for metaverse-related tokens or NFTs tied to Meta-specific initiatives, but reallocating funds to AR hardware shows continued investment in spatial computing rather than an exit. Historically, corporate cuts in big tech generate short-term sentiment shifts for related sectors (e.g., layoffs at a major metaverse player can weigh on metaverse token sentiment), but without a direct change to blockchain strategy or token listings the effect on crypto prices tends to be limited. Short term: possible modest negative sentiment for metaverse-focused tokens and NFT marketplaces tied to VR experiences. Long term: neutral-to-mixed — continued AR investment may support broader adoption of spatial computing, which could eventually benefit blockchain projects that integrate with AR, but the pivot reduces immediate capital flow into VR-specific crypto projects. Traders should watch announcements tying Reality Labs roadmap to blockchain/NFT plans, employment numbers, and any statements on token or platform partnerships for clearer market signals.