Meta has implemented layoffs across its Reality Labs division, affecting employees working on virtual reality and augmented reality projects. The company confirmed that staff reductions hit multiple teams, including Oculus Studios and the Supernatural VR fitness application.
The job cuts primarily impacted Oculus Studios, Meta's internal games division developing content for Quest VR headsets, as well as teams involved in hardware development. Supernatural, the VR fitness game that Meta acquired for over $400 million, saw its team reduced as part of the restructuring.
"These changes aim to help Studios operate more efficiently on future mixed reality experiences while maintaining content delivery for current users," stated Meta spokesperson Tracy Clayton. The company emphasized its ongoing commitment to mixed reality experiences, including fitness and gaming applications.
The layoffs come at a challenging time for Meta's virtual reality business. While the company's Ray-Ban smart glasses have exceeded sales expectations, Quest headset sales continue to face difficulties. The latest Quest 3S model, released in fall 2024, is currently being offered at a 10% discount.
Reality Labs, which focuses on VR and AR technology development, reported substantial losses in recent quarters. The division posted an operating loss of $4.97 billion with $1.1 billion in sales during the fourth quarter of 2024.
The restructuring follows Meta's broader workforce reduction earlier in 2024, where the company cut 5% of positions deemed lowest-performing. Despite the current layoffs, Meta maintains approximately 495 open positions within Reality Labs, and affected employees are eligible to apply for other roles within the company.