Meta Cuts Jobs at Reality Labs as It Refocuses Metaverse Strategy

Meta Platforms Inc., the parent company of Facebook, has initiated another round of layoffs, this time within Reality Labs, the division leading the charge on the company’s augmented and virtual reality ambitions. While Meta declined to specify how many employees were affected, the cuts spanned several teams, including those at Oculus Studios, the internal game development branch behind Quest VR headsets.

This move is part of a broader strategic overhaul aimed at streamlining operations and increasing efficiency across Meta’s extended reality initiatives. Among the impacted teams was Supernatural, a popular VR fitness app under the Reality Labs umbrella.

“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 message shared in the official Supernatural Facebook group, Meta addressed the emotional toll of the layoffs:

“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 layoffs come at a financially turbulent time for Reality Labs, which posted a $4.97 billion operating loss in Q4 2024 against $1.1 billion in revenue, according to Meta’s latest earnings report. The division’s continued losses underscore the company’s uphill battle to gain traction in the still-nascent immersive tech market.

Despite these headwinds, CEO Mark Zuckerberg has reaffirmed his commitment to Meta’s long-term vision for a metaverse-centered future. Reality Labs not only manages the Quest product line but also leads Meta’s broader AR/VR efforts, spanning hardware, software, and platform development.

As of December 31, 2024, Meta’s global headcount stood at 74,067. The Reality Labs layoffs follow a February workforce reduction in which approximately 5% of employees were let go, largely due to internal performance reviews.

The company says this restructuring is part of a targeted effort to sharpen focus and optimize resources—particularly within Oculus Studios, which is central to Meta’s immersive content strategy. The goal is to better align ongoing work with the company’s long-term ambition to build a scalable, sustainable metaverse.

With another earnings report on the horizon, industry watchers are closely monitoring how Meta will navigate the balance between its grand immersive tech ambitions and the near-term financial and operational realities. For now, the latest cuts reflect the ongoing tension between innovation and execution in one of tech’s most high-stakes bets.