Meta cuts 10% of its Reality Labs workforce—about 1,500 employees—as the tech giant pivots away from metaverse ambitions toward wearables and AI innovation. CEO Mark Zuckerberg has recalibrated the company's spending strategy following disappointment with flagship metaverse initiatives like Horizon Worlds, which fell short of projected growth targets. The shift signals a major market recalibration: while immersive virtual worlds captured mainstream attention, the category has struggled to deliver the adoption rates needed to justify sustained investment. Meta's move reflects broader industry skepticism about near-term metaverse viability, reinforcing how quickly Web3 narratives can shift when venture capital economics don't align with execution reality.