Meta Reduces Staff at Reality Labs VR Division

Meta has cut jobs in its Reality Labs division, which focuses on virtual reality (VR) and augmented reality (AR) technology.

The layoffs specifically affected employees at Oculus Studios, the team that creates apps and games for Meta's Quest VR headsets.

While Meta hasn't revealed exactly how many employees lost their jobs, the company confirmed that the cuts impacted teams working on Quest products. This includes staff working on the VR fitness app Supernatural, which Meta bought from Within in 2023.

"Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size," said Meta spokesperson Tracy Clayton in a statement to The Verge. "These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience, while still delivering great content for people today."

The spokesperson emphasized that Meta remains committed to investing in mixed reality experiences, including fitness and games. They also stated that the company's goal to deliver the best experiences for Quest and Supernatural users hasn't changed.

Reality Labs has been losing money for Meta at an alarming rate. According to recent financial reports, the division lost nearly $5 billion in the fourth quarter of 2024 while generating only about $1.1 billion in sales. Since changing its name from Facebook to Meta, the company has consistently reported billions of dollars in annual losses from Reality Labs as part of its metaverse strategy.

These staff reductions come at a challenging time for Meta. Recently, the European Union fined the company $214 million for not offering users a less data-intensive option for using Facebook and Instagram.

The Reality Labs layoffs also contribute to a troubling pattern of job losses across the tech and gaming industries. In just the first three months of 2025, approximately 1,600 developers have lost their jobs at various companies, including Ubisoft, Eidos Montréal, NetEase Games, and, most recently, Devolver Studios.