Horizon Worlds Developers Confront Job Reductions Amid Meta’s Strategic Transition
Meta’s Reality Labs segment, which is tasked with the creation of virtual reality (VR) innovations and platforms, is experiencing major transformations as the company realigns its strategic priorities. Reports suggest that Meta intends to eliminate roughly 10% of its Reality Labs personnel, equating to about 1,500 positions. These layoffs mainly focus on the metaverse sector, impacting staff involved in developing VR headsets and the VR-centric social platform, Horizon Worlds.
This move follows an earlier budget cut in December 2025, which redirected resources towards artificial intelligence (AI) and smart eyewear, instead of VR. Even though Meta Quest headsets saw robust sales during the holiday period, Horizon Worlds has faced difficulties in competing with rivals such as Roblox, Fortnite, and Minecraft.
Meta’s Chief Technology Officer, Andrew Bosworth, has scheduled an important meeting for January 14, 2026, to discuss these developments. The company is said to be shifting its focus towards creating an ultralight VR headset, which may debut in late 2026 or 2027. This forthcoming device is anticipated to boast premium features and a corresponding price, marking a shift away from Horizon Worlds and external Horizon OS development.
As Meta reorients its focus on first-party VR headsets and gaming, the prospects for Horizon Worlds and its developers remain unclear. The forthcoming meeting is expected to shed more light on the company’s trajectory and its implications for its workforce.