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Meta to Cut About 10% of Reality Labs Workforce as Metaverse Push Scales Back

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Meta Platforms plans to cut around 10% of employees in its Reality Labs division, according to a report by the New York Times citing three people familiar with the discussions. The layoffs, which could be announced as soon as Tuesday, are expected to fall disproportionately on teams working on metaverse-related products, including virtual reality headsets and virtual social platforms.

Reality Labs employs roughly 15,000 people and has been at the center of Meta’s long-running bet on the metaverse, an immersive digital universe championed by Chief Executive Mark Zuckerberg. Since 2020, the division has burned more than $60 billion, as heavy investment failed to translate into mass adoption or meaningful revenue.

Beyond the metaverse, Reality Labs is responsible for several of Meta’s hardware initiatives, including Quest mixed-reality headsets, smart glasses developed in partnership with EssilorLuxottica under the Ray-Ban brand, and longer-term augmented reality glasses. While Meta has struggled to sell its broader vision of interconnected virtual worlds, its smart glasses have shown early traction—an area where rivals such as Google and Apple have so far failed to gain momentum with initial products.

According to the report, Meta Chief Technology Officer Andrew Bosworth, who oversees Reality Labs, has scheduled an in-person staff meeting for Wednesday and urged employees to attend, citing an internal memo.

Meta declined to immediately comment on the report. The planned cuts come as the Facebook parent faces growing pressure to refocus resources while trying to regain ground in Silicon Valley’s artificial intelligence race. Meta has recently struggled to generate enthusiasm around its latest AI efforts, including the Llama 4 model, adding to investor scrutiny over spending priorities.

Samsung Unveils Galaxy XR Headset to Challenge Apple’s Vision Pro With Help From Google and Qualcomm

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Samsung Electronics (005930.KS) has officially entered the extended reality (XR) arena with the launch of its Galaxy XR headset, developed in collaboration with Google and Qualcomm, as it seeks to rival Apple’s Vision Pro and Meta’s Quest devices.

Priced at $1,799, roughly half the cost of Apple’s headset, the Galaxy XR marks Samsung’s most ambitious push into next-generation computing. It runs on the Android XR operating system and features Google’s Gemini AI, which allows users to interact with real-world environments by identifying and analyzing objects in view.

The Galaxy XR combines virtual reality (VR) and mixed reality (MR) capabilities, letting users watch YouTube videos, play games, or explore 3D environments while maintaining awareness of their surroundings. Qualcomm’s Snapdragon XR2+ Gen 2 chip powers the headset, ensuring high performance for immersive AI-driven experiences.

Executives from Samsung and Google said the device, developed under the codename “Moohan” (meaning infinite in Korean), has been in the works for nearly a decade. “We believe now is the right moment to bring this to market,” said Jay Kim, executive vice president of Samsung’s mobile division.

Google’s AI integration is central to the headset’s appeal. Gemini can understand what users see and provide information, directions, or contextual responses in real time. “Google entering the fray again changes the dynamic,” said Anshel Sag, an analyst at Moor Insights & Strategy, noting that the software adds an estimated $1,000 in value to the device.

Buyers this year will receive 12 months of Google AI Pro, YouTube Premium, Google Play Pass, and exclusive XR content. Samsung is also working with Warby Parker and Gentle Monster to develop lighter, glasses-style models in future releases.

The launch comes as the head-mounted display market remains challenging. Research firm Gartner expects the global sector to grow modestly to $7.27 billion next year, while shipments of mixed reality devices are projected to fall 20% in 2025, according to Counterpoint Research.

Still, analysts say Samsung’s lower price and powerful partnerships position it as a credible challenger. “With a more competitive price point than Apple’s Vision Pro, Samsung’s Project Moohan headset could become a strong contender in the premium XR market,” said Flora Tang, senior analyst at Counterpoint.

Whistleblowers Accuse Meta of Prioritizing VR Profits Over Child Safety

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Two former Meta researchers told the U.S. Senate Subcommittee on Privacy and Technology that Meta Platforms knowingly ignored harms to children on its virtual-reality platform to protect profits.

Key Testimonies

  • Cayce Savage (Former User Experience Researcher):

    • Said Meta shut down internal research proving that children were exposed to sexually explicit content in VR.

    • Claimed researchers were instructed not to investigate child safety harms so the company could claim ignorance.

    • Reported instances of bullying, sexual assault, and requests for nude photos involving children in VR.

  • Jason Sattizahn (Former Reality Labs Researcher):

    • Testified he was not surprised Meta’s AI chatbots were permitted to engage children in romantic or sensual conversations, as revealed by a Reuters investigation.

Congressional Concerns

  • Sen. Marsha Blackburn (R-TN): Highlighted chatbot risks and renewed calls for the Kids Online Safety Act, which passed the Senate but stalled in the House.

  • Lawmakers warned that Meta’s failures add urgency for federal safeguards on children’s digital experiences.

Meta’s Response

  • Meta spokesperson Andy Stone rejected the accusations, claiming the whistleblowers “selectively leaked internal documents” to create a misleading narrative.

  • Said there was never a blanket ban on child-related research, and that problematic chatbot behaviors had been removed.

Broader Context

  • Meta already faces bipartisan scrutiny for youth safety across Instagram, Facebook, and AI tools.

  • The testimony underscores growing pressure on Congress to regulate Big Tech’s handling of child protection in immersive and AI-driven platforms.