Last week, a major announcement was made: Meta is significantly restructuring its Reality Labs division. According to reports, the company plans to cut about 1,500 employees from this department, which accounts for 10% of the total team (15,000 people), with the announcement expected to be made as early as this week.

Why cut so many people? Because the cost-to-benefit analysis just doesn't add up. Since becoming independent in 2020, Reality Labs has been burning money every year on VR headsets and metaverse platforms, with cumulative losses exceeding $70 billion. And what about their flagship product, Horizon Worlds? Less than 900 daily active users—this number says it all.

Interestingly, the funds freed up by layoffs are not being saved but are directly redirected to AI development and wearable hardware divisions. Meta's goal is no longer to keep burning money on building virtual worlds but to focus on AI and smart glasses.

This decision reflects a shift in the overall mindset of the tech industry. At the beginning of 2024, many companies were touting the prospects of the metaverse and virtual worlds. Now, it's about the collision of actual investment and real user data. Some trends have gone too far, and ultimately, it all comes back to users and business realities. Meta's move, to some extent, signifies that major tech companies are beginning to calmly reassess the commercial value of these new technologies.