Meta plans to cut investment in its Metaverse team and redirect funds to its VR glasses business.

PANews reported on January 12th, citing a report from The New York Times, that three employees familiar with the matter stated that Meta Platforms (META.O) is considering layoffs in a branch of its Reality Labs division that works on the "metaverse" business, potentially starting as early as next month, affecting 10% to 30% of the team's employees. This team is primarily responsible for VR headsets and VR-based social networks. Reality Labs comprises the Metaverse and Wearables divisions. Sources indicated that management expects to redirect the savings from the layoffs to an AR glasses project. Meta launched AR glasses in 2021 in partnership with Ray-Ban, and sales have exceeded the company's internal targets. The sources stated that Meta is reassessing its Metaverse investments, and within the Metaverse division, executives are considering significant reductions in VR-related positions.