Meta Platforms is cutting roughly 200 positions from its Reality Labs division, the unit responsible for the company’s virtual and augmented reality headsets. The layoffs will impact employees working at the Menlo Park campus on Oak Creek Drive, according to a WARN filing submitted to California’s Employment Development Department.
The separations are set to begin in mid-May. Those affected will receive a severance package consisting of 16 weeks of base salary, plus a $3,000 bonus for every month of tenure at the company, along with a $500 monthly contribution toward health insurance costs for each month of employment.
Reality Labs, which operates under CEO Mark Zuckerberg’s direct oversight, has accumulated over $67 billion in losses since 2020 as the company pours resources into its vision for spatial computing. The division did generate $1.1 billion in revenue during the most recent quarter, but the unit remains far from profitable overall.
This round of cuts is part of a wider organizational shakeup that kicked off in March. Zuckerberg has characterized the effort as a “significant restructuring” designed to streamline operations and reduce bloat across the company. The Austin, Texas office is also facing job reductions, with Meta expecting to wrap up all workforce adjustments by mid-June.
At the same time, the company is expanding its artificial intelligence teams. Meta is offering compensation packages topping $500,000 for senior AI hires, reflecting Zuckerberg’s stated ambition to develop systems capable of human-level reasoning and learning. The contrast highlights Meta’s approach of investing heavily in AI while scaling back areas that have underperformed financial targets.