The sources, who requested anonymity because they were not authorized to discuss confidential decisions, indicated that the cuts will disproportionately impact employees working on virtual reality headsets and the company's VR-based social network. While these layoffs represent a relatively small fraction of Meta's total workforce of 78,000, they signal a significant shift in the company's strategic priorities.

Andrew Bosworth, Meta's chief technology officer overseeing Reality Labs, has scheduled a mandatory in-person meeting for Wednesday, according to a memo obtained by The New York Times. The memo described the meeting as the most important of the year, although it did not provide specific details about the agenda.

The move comes as Meta continues to invest heavily in its metaverse ambitions, with Reality Labs reporting substantial losses. In 2022, the division lost $13.7 billion, and losses continued into 2023, raising concerns among investors about the long-term viability of the metaverse strategy. Mark Zuckerberg, Meta's chief executive, has been under pressure to demonstrate a return on investment in the metaverse, while simultaneously navigating the rapidly evolving landscape of artificial intelligence.

The planned layoffs reflect a broader trend within the tech industry, with companies reassessing their investments and streamlining operations in response to economic uncertainty and shifting market demands. Meta's increased focus on AI aligns with the growing importance of this technology across various sectors, including social media, advertising, and enterprise solutions. The company is likely aiming to leverage AI to enhance its existing products and services, as well as explore new revenue streams.

The impact of these layoffs on Meta's metaverse roadmap remains to be seen. While the company is scaling back its investment in certain areas, it is expected to continue developing its core VR and AR technologies. The shift towards AI could also potentially benefit the metaverse, as AI-powered tools and features could enhance user experiences and drive adoption. The upcoming meeting led by Andrew Bosworth is expected to provide further clarity on the company's future plans for Reality Labs and its overall strategic direction.