Meta eye massive capacity hike for AI glasses amid Reality Labs reshuffle

Meta Platforms (NASDAQ:META) and EssilorLuxottica are in discussions to double their production capacity for AI-powered smart glasses to 20 million units annually by the end of 2025, according to people familiar with the matter.

The potential move comes as the Ray-Ban Meta glasses emerge as a breakout hit, even as the company aggressively prunes its broader metaverse hardware division.

The manufacturing expansion—which could eventually scale to 30 million units—is a response to "unprecedented demand" that has outstripped current supply chains.

The success of the second-generation frames has been so significant that Meta recently paused the international expansion of its new Ray-Ban Display glasses ($799) to the UK, France, and Italy to prioritize stock for the U.S. market.

The surge in production signals a fundamental pivot within Meta's Reality Labs unit.

On Tuesday, the company began cutting over 1,000 jobs—roughly 10% of the division's workforce—as it redirects resources away from high-end VR headsets and virtual-world digital assets toward AI-driven wearables.

According to an internal memo from CTO Andrew Bosworth, the goal is to make Reality Labs "more sustainable" after burning more than $70 billion since 2021.

The smart glasses are now viewed as the primary bridge to a post-smartphone era, with analysts from Counterpoint Research noting that Meta captured a 73% share of the global smart glasses market in the first half of 2025.

Despite the manufacturing optimism, Meta’s stock slipped 1% Tuesday as investors weighed the costs of the expansion against the ongoing losses in the hardware division.