Meta is preparing to lay off employees within its Reality Labs division, according to three individuals familiar with the situation who spoke with Business Insider. The cuts are expected to primarily affect teams working on virtual reality headsets and Horizon Worlds, the company’s VR-based social platform, two employees said. The restructuring follows a key division-wide meeting scheduled for Wednesday, which Reality Labs chief and Meta CTO Andrew Bosworth has described as the “most important” of the year. Employees have been urged to attend in person, signaling the significance of the upcoming announcements. Reality Labs has been one of Meta’s most expensive ventures, accumulating over $70 billion in losses since 2020. Despite significant investments, the division has struggled to achieve profitability and has undergone multiple rounds of layoffs in recent years as Meta refocuses its strategy on artificial intelligence. In a memo obtained by Business Insider last year, Bosworth emphasized that 2025 would be a pivotal year for his leadership, warning that the outcome could define Reality Labs as either visionary or a “legendary misadventure.” The upcoming layoffs reflect the ongoing pressure to streamline operations and align spending with Meta’s broader priorities. As the company shifts resources toward AI development, VR and extended reality initiatives have taken a backseat. The latest round of cuts underscores the challenges Meta faces in balancing long-term ambitions in immersive technologies with financial performance and investor expectations.