Meta makes more job cuts at Reality Labs as VR focus narrows

Meta has carried out another round of job cuts, this time within its Reality Labs division, as the company continues to tighten its focus on efficiency and the future of mixed reality development.

The layoffs have hit Oculus Studios—the arm responsible for virtual and augmented reality gaming on Meta’s Quest headsets. While the exact number of affected employees hasn’t been disclosed, reports suggest the restructuring includes developers involved in key VR projects, including the Supernatural fitness app.

The Verge first broke the story, which was later confirmed by CNBC. A Meta spokesperson told the outlet that the changes were intended to help Oculus Studios “work more efficiently on future mixed reality experiences for our growing audience.”

In a post on the official Supernatural Facebook group, the company acknowledged the layoffs with a heartfelt message: “Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt.”

This latest development follows earlier job cuts at Meta in 2024, when the company laid off 5% of staff it identified as underperformers. The broader trend reflects Meta’s ongoing efforts to rein in costs, especially within its high-spending Reality Labs unit.

Reality Labs, which oversees Meta’s push into the metaverse through hardware and immersive software, reported a staggering operating loss of $4.97 billion in the final quarter of 2024. This came against revenue of just $1.1 billion, highlighting the financial burden of Meta’s long-term gamble on VR and AR technologies.

With the company’s next earnings report due this Wednesday, investors and analysts will be paying close attention to how Meta plans to move forward in the mixed reality space—particularly as competitors like Apple and Samsung begin launching their own devices.

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