Meta plans to cut about 10% of the staff at its Reality Labs division that works on products including the Metaverse, The New York Times reported on Monday, citing three people with knowledge of the discussions. The report said the cuts at Reality Labs, which has about 15,000 employees, could be announced as early as Tuesday and would adversely impact those in the Metaverse unit who work on virtual reality headsets and the virtual social network.

The Metaverse was a massive project led by CEO Mark Zuckerberg, who prioritized enterprise and spent heavily, spending more than $60 billion since 2020 for the business alone. In addition to Metaverse, the Reality Labs segment also produces Meta’s Quest mixed-reality headset, Essilor Luxottica’s Ray-Bans and smart glasses made of augmented-reality glasses.

While the company has struggled to sell its vision of an increasingly interconnected world, a broader digital universe, it has had early success with smart glasses as competitors like Google and Apple failed to tap the market in early attempts. Andrew Bosworth, Meta’s chief technology officer who oversees Reality Labs, has called a meeting on Wednesday and urged employees to attend in person, the NYT reported, citing a memo.

Meta did not immediately respond to a Reuters request for comment. The report comes as Facebook-parent Struggles to stay relevant in Silicon Valley’s artificial intelligence race after its Llama 4 model received a poor response.