Meta Platforms Inc., the parent company of Facebook, has confirmed layoffs within its Reality Labs division, the arm responsible for driving its ambitious efforts in virtual and augmented reality (VR/AR). The company has not disclosed the number of employees affected, but the cuts hit various teams within Oculus Studios, the in-house game development unit behind the Quest VR headsets.
The layoffs come as part of a broader restructuring strategy aimed at streamlining operations and ensuring long-term efficiency across Meta’s mixed reality initiatives. The teams working on projects such as Supernatural, a popular VR fitness app, were among those impacted.
“These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience,” said a Meta spokesperson. “While still delivering great content for people today.”
In a heartfelt note shared in the official Supernatural Facebook group, Meta acknowledged the human cost behind the changes, stating:
“We’re deeply saddened to share that these changes have resulted in the loss of some of our incredibly talented team members. Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt.”
The restructuring comes at a time when Reality Labs continues to post steep losses. In the fourth quarter of 2024, the division recorded an operating loss of $4.97 billion, while generating $1.1 billion in revenue, according to the company’s most recent financial disclosures. These losses highlight the ongoing challenges Meta faces as it tries to lead the market in immersive technologies, even as consumer adoption remains moderate.
Despite these financial setbacks, CEO Mark Zuckerberg has remained committed to the company’s long-term vision of a metaverse-powered future. Reality Labs oversees not only the Quest headset line but also the broader development and marketing of Meta’s AR/VR ecosystem, including wearable devices and content platforms.
Meta’s total global headcount was reported at 74,067 as of December 31, 2024. The recent Reality Labs layoffs follow a February move in which the company laid off around 5% of its overall workforce, targeting employees deemed underperformers as part of internal evaluations.
The company has characterized these changes as necessary for refining its focus and optimizing resources, especially within Oculus Studios, which plays a pivotal role in creating immersive content experiences. The restructuring is designed to better align the division’s efforts with Meta’s long-term goals of building a sustainable, scalable metaverse.
As Meta prepares to release its latest earnings report, industry observers are watching closely to see how the company will balance its vision for the metaverse with immediate financial pressures and workforce morale.
For now, the layoffs serve as a reminder that while Meta continues to invest heavily in the future of immersive tech, it is also grappling with the reality of managing costs, performance, and expectations in a highly competitive and uncertain market.
