Meta Overhauls Reality Labs Division, Impacting Oculus Studios Teams
In a notable effort to streamline processes, Meta has begun layoffs within its Reality Labs division, directly affecting the teams associated with Oculus Studios — the firm’s gaming and mixed reality development sector. The restructuring, revealed on April 24, 2025, is part of Meta’s wider initiative to boost efficiency and concentrate on delivering next-generation mixed reality experiences.
What Transpired?
Meta has confirmed that various employees in Reality Labs, including those involved in Oculus Studios projects, have been let go. While the precise number of affected staff has not been made public, the company stressed that the adjustments aim to enhance Oculus Studios’ capacity to “operate more efficiently on upcoming mixed reality experiences for our expanding audience.”
A Meta representative informed Android Central, “Certain teams within Oculus Studios are experiencing changes in structure and roles that have influenced team size.” The representative further mentioned that the company is dedicated to creating immersive experiences for its Meta Quest VR platform.
Among the projects affected is Supernatural, a well-known VR fitness game. Employees assigned to this project were confirmed to be among those laid off, as reported by Reuters and validated by Meta.
Why the Reductions?
Although Reality Labs achieved record revenue in 2024 — propelled by robust sales of the Meta Quest 3S and Ray-Ban Meta Smart Glasses — the division continues to operate at a loss. In Q4 2024 alone, Reality Labs recorded nearly $5 billion in operating expenses.
This financial pressure has led Meta to reevaluate its internal structure. CEO Mark Zuckerberg had previously signaled potential additional cuts in 2025, following a 5% reduction of the company’s least-performing employees. These layoffs seem to be aligned with that ongoing strategy to enhance performance and curtail expenditures.
Strategic Realignment Toward AI and Mixed Reality
The layoffs coincide with Meta’s growing investment in artificial intelligence and wearable tech. While the company continues to focus on the metaverse and VR gaming, it is also redirecting resources toward AI projects, which are anticipated to take up a substantial portion of Meta’s budget in 2025.
In a recent declaration, Meta reaffirmed its commitment to the Quest and Supernatural communities, stating, “We are steadfast in our investment in mixed reality experiences, encompassing fitness and games, and our determination to provide the best experiences possible stays unchanged.”
What Lies Ahead?
Meta is set to publish its Q1 2025 earnings report on April 30, which may shed light on the financial state of Reality Labs and the repercussions of these recent structural changes.
Despite the layoffs, Meta’s long-range vision for the metaverse remains unaffected. Zuckerberg characterized 2025 as a “pivotal year for the metaverse,” with intentions to unveil more “visually captivating content” and broaden the user base of Quest and Horizon platforms.
Conclusion
The recent reductions at Oculus Studios highlight the hurdles Meta encounters in balancing innovation with financial viability. As the company navigates the shifting dynamics of virtual and mixed reality, these strategic alterations are likely to influence the future of Meta’s immersive technology ecosystem.
While the layoffs represent a challenging period for those affected, they also illustrate Meta’s resolve to redirect its efforts towards high-impact projects that align with its long-term aspirations in the metaverse and beyond.
Topics: Meta Quest | Oculus Quest | Reality Labs | Meta Layoffs | VR Gaming | Supernatural VR | Meta Restructuring
