META is laying off an undisclosed number of employees from its Reality Labs division, the company confirmed. This is part of broader efforts to streamline operations within its virtual and mixed reality initiatives.
The cuts impact teams within Oculus Studios—Meta’s internal game development arm for the Quest headset lineup. Staff involved in developing popular titles like Supernatural, the VR fitness game acquired for over $400 million, were among those affected. According to sources familiar with the matter, some hardware teams were also hit.
“These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience,” said Meta spokesperson Tracy Clayton.
Reality Labs has been a financial drain on Meta, posting a $5 billion loss in Q4 2024 alone. CEO Mark Zuckerberg has reaffirmed his long-term vision for VR and AR technologies despite the financial strain, pointing to sustained investment in content, hardware, and community.
Meta’s overall headcount was 74,067 as of the end of 2024. While smart glasses co-developed with Ray-Ban have exceeded sales expectations, the Quest line continues to underperform, with discounts already appearing for the newer Quest 3S model.
The company declined to offer further details on the layoffs outside of Oculus Studios.
