Meta's Reality Labs Faces Layoffs Amid Push for Efficiency in VR Development

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Meta’s Reality Labs Faces Layoffs Amid Push for Efficiency in
This picture taken on January 12, 2023 in Toulouse, southwestern France shows a smartphone and a computer screen displaying the logos of the social network Facebook and its parent company Meta. LIONEL BONAVENTURE/AFP via Getty Images/Getty Images

This week, Meta implemented layoffs within its Reality Labs division, though the exact number of affected employees has not been disclosed.

The move is part of the company's broader effort to enhance efficiency in its virtual and augmented reality initiatives.

Among the teams affected by Meta's recent layoffs are Oculus Studios, known for developing VR games for the Quest headset, and Supernatural, the VR fitness platform acquired by Meta for more than $400 million, BusinessInsider said.

These changes come as Meta pushes to streamline its mixed reality operations.

"Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size," a Meta spokesperson said.

"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."

In a recent Facebook post, the Supernatural team acknowledged the layoffs and announced that the frequency of new workout releases will be reduced.

The team expressed sadness over the departure of several valued staff members as a result of the changes.

Meta Continues Layoffs in Reality Labs Amid Restructuring Efforts

The layoffs follow Meta's earlier job cuts in February, when the company let go of 5% of its total workforce, focusing on what it called "low performers."

At that time, at least 560 people in Reality Labs were affected, many from the Horizon team working on Meta's virtual worlds.

According to CNBC, Reality Labs has been a major investment for Meta, but it has also been costly. In the fourth quarter of 2024, the division lost $4.97 billion while bringing in $1.1 billion in revenue.

Despite recent job cuts, Meta continues to list 495 open positions within its Reality Labs division.

A company spokesperson confirmed that employees affected by the recent layoffs are eligible to pursue other positions within Meta.

Some individuals have already been matched with interview opportunities for available roles.

In an internal memo, Meta Chief Technology Officer Andrew Bosworth referred to 2025 as the most important year of his eight-year tenure with the company.

He said success in Horizon Worlds on mobile could decide the future of Meta's metaverse plans.

Meta recently restructured the leadership of Reality Labs as well. COO Javier Olivan now oversees the division, signaling the company's intent to align VR efforts more closely with its main business.

Employees who are not rehired will officially leave the company by May 23, 2025, according to an internal email viewed by Business Insider.

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Meta, Virtual Reality

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