Meta plans to reduce its workforce by around 1,500 employees in the Reality Labs division, impacting about 10 percent of the unit. The company is ramping up its focus on artificial intelligence (AI). A recent filing with the state’s Employment Security Department disclosed that Meta has already let go of 331 employees in the Seattle area and across Washington as part of the broader workforce reduction. The layoffs will impact employees at four Meta facilities in Seattle, on the Eastside, and approximately 97 remote workers in Washington, with the changes set to take effect on March 20.
The Reality Labs division, which concentrates on virtual and augmented reality (AR) technologies, employs about 15,000 individuals, representing roughly 19 percent of Meta’s total global workforce of approximately 78,000 employees. Since 2020, the division has incurred over $70 billion in losses, posing a persistent financial burden on the company.
Previously, Meta’s Chief Technology Officer and Reality Labs head, Andrew Bosworth, convened an all-hands meeting, urging employees to attend in person, deeming it the “most crucial” meeting of the year internally, as reported by Business Insider.
The job cuts coincide with Meta CEO Mark Zuckerberg instructing senior leaders to tighten budgets for 2026 while channeling significant investments into AI initiatives, totaling billions of dollars. This investment encompasses increased funding for Meta’s internal research endeavors, notably the TBD Lab, aimed at advancing “superintelligence.”
As part of the AI push, Meta allocated $14.3 billion in 2025 to Scale AI and enlisted its CEO, Alexandr Wang. Additionally, Meta acquired Manus, a burgeoning AI agent startup, in a transaction exceeding $2 billion in late 2025.
In tandem with the strategic realignment, Meta revamped its employee evaluation and bonus structure, unveiling a new performance scheme dubbed Checkpoint, according to Business Insider. Under this system, slated for implementation in mid-2026, a select group of top performers could qualify for bonuses up to 300 percent of their base payout, with around 20 percent of employees anticipated to achieve an “Outstanding” rating, entitling them to double their base bonus.