Meta Trims Workforce In Reality Labs, Refocuses Oculus Studios On Mixed Reality Development

Meta has initiated another wave of layoffs within its Reality Labs division, as part of a broader strategy to streamline operations and concentrate on advancing its mixed reality platforms.

According to reports initially published by The Verge and later confirmed by CNBC, the latest round of job cuts primarily affected Oculus Studios, the team responsible for developing virtual and augmented reality games for the Meta Quest headset line.

A Meta spokesperson confirmed the restructuring to CNBC, noting that the decision aims to enhance operational efficiency and better position Oculus Studios to build next-generation mixed reality experiences for its expanding user base. While the company emphasised future innovation, the restructuring has resulted in job losses among developers, including those who contributed to key projects like the Supernatural fitness app.

The Supernatural team addressed the layoffs in a heartfelt message posted to the app’s official Facebook group, expressing gratitude to the departing employees: “Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt," as per the report.

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Previous Layoffs At Meta

This move follows a broader internal shake-up earlier this year, when Meta laid off approximately 5 per cent of its workforce, primarily targeting what it described as underperforming roles. The latest reductions reflect Meta’s continued focus on optimising its Reality Labs division, which remains central to the company’s long-term vision for immersive digital environments.

In the fourth quarter of 2024, Reality Labs reported an operating loss of $4.97 billion on revenue of just $1.1 billion—a stark indicator of the scale and risk involved in Meta’s ambitious, long-term bet on the future of computing.

With Meta’s upcoming earnings report scheduled for Wednesday, market analysts are expected to pay close attention to any shifts in the company’s virtual and augmented reality strategy, particularly as competitors like Apple and Samsung make their own moves into the mixed reality space.

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