Mumbai, March 22: Meta Platforms has announced a significant strategic shift by winding down its primary virtual reality initiatives, including the scheduled closure of its flagship platform, Horizon Worlds. The decision comes as the company reallocates resources toward artificial intelligence and wearable technology following several years of substantial financial investment into the metaverse.

The social media giant confirmed that Horizon Worlds will no longer be supported on virtual reality devices after June 15, 2026. While the application is scheduled for removal from the Meta Quest store by the end of March, the company intends to maintain it exclusively as a mobile-only platform for the foreseeable future. Meta Layoffs: Tech Giant Weighs Biggest Job Cuts Ever Amid Massive AI Spending Push.

Meta Restructuring and Reality Labs Job Reductions

The scale-back coincides with a period of significant downsizing within Meta’s hardware division, Reality Labs. Internal data indicates that over 1,000 positions were eliminated in January 2026, with industry analysts suggesting further reductions may occur as the company pivots its long-term focus toward AI-enabled wearables and generative software.

Internal Critique of Management Strategy

Former employees have recently voiced concerns regarding the internal leadership and execution of the metaverse vision. Vasuman Moza, a former Reality Labs staff member, stated that the project, which reportedly cost approximately USD 80 billion, suffered from a disconnect between middle management and the actual needs of younger technology users and developers.

Moza highlighted instances where essential tools for game developers were sidelined in favour of high-priority projects that lacked market demand. He noted that such patterns of misaligned priorities contributed to the platform's inability to achieve the user adoption rates originally projected by executive leadership. Meta Patents AI Technology to Simulate Social Media Activity of Deceased Users.

Shift Toward Artificial Intelligence

Meta appears to be transitioning away from immersive virtual environments to concentrate on the burgeoning artificial intelligence sector. This move aligns with broader industry trends where major technology firms are prioritising AI integration over experimental virtual reality hardware. The company is expected to continue developing AI-centric products as its primary growth driver moving forward.

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(The above story first appeared on LatestLY on Mar 22, 2026 03:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).