Meta Lays Off 100 Reality Labs Workers as It Reshuffles VR Ambitions

Meta's push into virtual and mixed reality took another hit this week.

The tech giant laid off more than 100 employees across its Reality Labs division.

The cuts are part of a broader effort to "streamline" overlapping work between internal groups, according to a report from Bloomberg.

This impacted teams working on VR experiences for Meta's Quest headsets and hardware operations.

While Meta confirmed layoffs had occurred, it declined to disclose the number of affected employees.

 

 

 

 

 

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A post shared by Reality Labs (@realitylabs)

In an emailed statement, Meta spokesperson Tracy Clayton addressed how teams within Oculus Studios would be seeing structural and role-specific changes.

She added that the changes are intended to help Oculus "work more efficiently on future mixed reality experiences" for a growing audience.

Behind the sanitized corporate language, the cuts dealt a blow to workers in areas Meta once touted as strategic priorities, especially fitness and immersive content.

Employees working on Supernatural, the VR fitness app acquired by Meta for a reported $400 million after a lengthy antitrust battle with the FTC, were among those laid off.

 

 

 

 

 

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A post shared by Supernatural (@getsupernatural)

Having recently celebrated its fifth anniversary, the company acknowledged the losses in a Facebook post, saying the team was "deeply saddened" and warning users of a reduction in weekly workout releases.

The layoffs come on the heels of a larger workforce reduction earlier this year

In February, Meta terminated around 5% of its staff — roughly 3,600 people — under the guise of "performance-based" cuts.

At a time when the company is still spending heavily to build its vision of the metaverse, this decision raises questions about the stability of its VR ambitions and about the human cost of constant restructuring.

Mario Ramić, CEO of Takeaway Reality, interprets recent layoffs in Meta’s VR division as a strategic pivot toward the emerging market of lightweight AR glasses.

"The layoffs are mostly in the VR division, it is a clear sign that meta is shifting from larger VR headsets to more sleek AR glasses (which look just like regular glasses). They have seen major success with their Meta Ray Ban models and a very good reception of their prototype Project Orion.

In terms of VR, they are well ahead of anyone in the market and with all the innovations they have lined up they think it will stay that way, and I agree with them.

What they really are gearing up for is a focus on the AR glasses which will be the next big battlefield for Meta, Apple, Samsung and Google. There are clear market signals that the market wants these types of glasses through the sales of the Meta Ray Ban glasses which have been performing really well.

In short, this does not mean Meta is abandoning VR, just a shift of focus towards the light-form AR Glasses and their development."

Reality Labs Faces Another Reset

Reality Labs, once positioned as Meta's innovation engine, has increasingly become a revolving door of reorganizations and headcount reductions.

Employees were told they could apply for other roles inside Meta, a common refrain during tech layoffs that rarely translates into meaningful reemployment at the same company.

Transparent, empathetic communication is crucial during layoffs such as this.

Companies risk long-term damage to employee morale, brand reputation, and future hiring efforts if they fail to show genuine accountability and care.

 

 

 

 

 

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A post shared by Reality Labs (@realitylabs)

Meanwhile, Meta maintains it is still "committed to investing" in areas like fitness and gaming for Quest, even as it pares back the teams responsible for delivering them.

The company has not provided updated financial targets for Reality Labs, which lost $16 billion last year.

For workers in the unit and users invested in Meta's VR ecosystem, this latest change signals a familiar reality.

When corporate priorities shift, it's employees and consumers who are left to pick up the pieces.

Back in January, Meta Quest teamed up with the NBA to bring fans in Alaska an immersive experience.