Meta has recently reduced its workforce within its Reality Labs division, the group responsible for developing virtual and augmented reality technologies, including the Quest headsets. The layoffs, which reportedly affected over 100 employees, have impacted teams across Oculus Studios, Meta's in-house VR content creator, and those working on hardware and the VR fitness app Supernatural.
These job cuts are part of Meta's broader initiative to streamline operations and improve efficiency within the company. A Meta spokesperson stated that the changes aim to help Oculus Studios work more efficiently on future mixed reality experiences while still delivering great content. Impacted employees can apply for other positions within Meta.
The news follows Meta's earlier decision to cut 5% of its workforce, approximately 3,600 employees, after performance reviews. CEO Mark Zuckerberg has emphasized a focus on a leaner, performance-driven culture within the company.
The Reality Labs division has been a significant financial drain for Meta. In the fourth quarter of 2024, the division reported an operating loss of $4.97 billion against a revenue of $1.1 billion. Despite these losses, Meta has affirmed its commitment to investing in mixed reality experiences, including fitness and games, and delivering the best possible experiences for the Quest and Supernatural communities.
Supernatural, the VR fitness app acquired by Meta for a reported $400 million, was one of the affected teams. The Supernatural team acknowledged the layoffs in a Facebook post, expressing sadness and warning users of a reduction in weekly workout releases.
Meta's struggles with its virtual world ventures reflect a broader trend of adoption challenges despite significant investments. The company's metaverse vision faces a critical year to determine whether the investment will be considered visionary or a failure. Despite the recent cuts in VR content teams, trends indicate companies are shifting their workforce towards areas of strategic value, such as AI and automation.
