Meta, the parent company of Facebook and Instagram, announced significant job cuts impacting over 1,000 employees within its Reality Labs division on Wednesday. The move signals a strategic shift for the tech giant, moving away from heavy investment in metaverse products and towards wearable technology development.

The layoffs, confirmed by Meta executives, represent a substantial reduction in the workforce dedicated to the metaverse, a virtual reality concept Meta has heavily promoted and invested in over the past several years. While the company continues to believe in the long-term potential of the metaverse, the current economic climate and evolving market priorities have prompted a reevaluation of resource allocation.

Instead of solely pursuing metaverse-centric initiatives, Meta is now prioritizing investments in augmented and virtual reality wearables. This includes advancements in hardware and software designed for applications beyond immersive virtual worlds, potentially encompassing areas like fitness tracking, communication, and productivity tools. Details on specific wearable projects are currently limited, but the shift indicates a broader vision for how Meta envisions its role in the future of computing and communication.

The decision reflects a broader trend within the tech industry, where companies are reassessing their investments in speculative technologies amid economic uncertainty and increased scrutiny of profitability. Meta’s previous commitment to the metaverse involved billions of dollars in research and development, and this restructuring aims to streamline operations and focus on more immediately viable opportunities. The company has been under pressure from investors to improve its financial performance and demonstrate a clear path to profitability.