Meta lays off over 100 employees in Reality Labs division

Meta has laid off more than 100 employees within its Reality Labs division, which focuses on virtual reality (VR) and augmented reality (AR) hardware and software development.  

The layoffs primarily affected teams within Oculus Studios, responsible for creating VR and AR games for Meta’s Quest headsets, as well as some employees working on hardware and the VR fitness app Supernatural.  

A Meta spokesperson confirmed that “some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size.”  

The company stated these changes aim to help Oculus Studios work more efficiently on future mixed reality experiences while continuing to deliver content for current users.  

The Supernatural team expressed sadness over the layoffs, noting that some talented team members were lost and that this will impact the production of new workout content.  

This round of cuts follows a broader reduction earlier this year when Meta trimmed 5% of its overall workforce, targeting underperforming employees.  

Meta’s Reality Labs division has faced significant financial challenges, reporting nearly $5 billion in operating losses in the fourth quarter of 2024 while generating about $1 billion in revenue.  

The layoffs are part of CEO Mark Zuckerberg’s “Year of Efficiency,” which emphasises cost-cutting and reprioritisation across Meta’s operations.  

Despite the reductions, Meta affirmed its continued commitment to investing in mixed reality experiences, including fitness and gaming.  

The restructuring aims to streamline operations amid mounting costs and the ongoing challenge of innovating in the emerging metaverse space.  

Affected employees have been given opportunities to apply for other roles within Meta.