This article first appeared on GuruFocus.

Meta Platforms Inc. (NASDAQ:META) is preparing a fresh round of cost discipline inside its Reality Labs division, with plans to cut roughly 10% of jobs as early as this week, according to people familiar with the matter. The move could reflect a broader recalibration of spending priorities, as the company looks to divert resources away from certain virtual reality initiatives and toward other AI-focused wearable products. The New York Times previously reported on the expected timing of the layoffs.

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The decision follows internal reviews that began late last year, when Chief Executive Officer Mark Zuckerberg asked senior leaders to identify budget reductions within Reality Labs. Those discussions included trimming investment tied to some virtual reality and metaverse products, Bloomberg News has reported. In December, executives were said to have explored potential budget cuts of as much as 30% for the metaverse group, which operates inside the Reality Labs organization.

Reality Labs, which encompasses teams building VR headsets, AI glasses, and Meta’s metaverse products, has been losing billions of dollars per quarter for several years as spending continues on offerings that have yet to generate meaningful revenue. The division employs about 15,000 people. A spokesperson for the Menlo Park, California-based company declined to comment on the reported job cuts.