Meta Pivots Reality Labs to AI Smart Glasses, Lays Off 1,500 in Metaverse Retreat

Summary

During Meta's Q4 2025 earnings call on January 29, 2026, CEO Mark Zuckerberg announced a strategic pivot of Reality Labs from the metaverse to AI-powered wearables, describing the current stage of AI smart glasses as approaching a "smartphone moment." Meta is laying off approximately 1,500 Reality Labs employees as part of this shift, redirecting investment toward its Ray-Ban Meta AI glasses line. Key operational details emerged: Meta is in talks with EssilorLuxottica to double annual productio