Meta tightens its belt again, job cuts hit Reality Labs division
Meta’s head start in VR with Quest headsets has made it a frontrunner in the consumer-facing metaverse race.
Meta has reportedly carried out another wave of layoffs inside its Reality Labs division, a move aimed at streamlining operations and sharpening the company’s focus on the future of mixed reality. The cuts affected an undisclosed number of employees, primarily within Oculus Studios, the creative force behind VR and AR games for the Meta Quest line of headsets. As per reports by The Verge and CNBC, the restructuring is yet another sign of the tough balancing act Meta faces as it tries to innovate in the still-nascent metaverse while keeping investors happy amid mounting costs.
A Meta spokesperson acknowledged the layoffs, noting the company is “restructuring to work more efficiently on future mixed reality experiences for our growing audience.” But behind the corporate polish lies a grimmer reality: the human toll. Among those affected are developers who contributed to well-known titles, including the Supernatural fitness app, a key part of Meta’s VR health and wellness push.
In a heartfelt message posted to the Supernatural Facebook group, the team paid tribute to those laid off: “Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt.”
The Cost of Ambition
This latest round of cuts follows a larger internal shake-up earlier this year, when Meta trimmed 5% of its workforce, targeting employees deemed underperformers. These moves are all part of CEO Mark Zuckerberg’s so-called “Year of Efficiency”—a directive that has seen aggressive cost-cutting and reprioritisation across Meta’s sprawling empire.
Yet, nowhere has the financial pressure been more intense than in Reality Labs.
In Q4 2024 alone, the division posted a staggering $4.97 billion operating loss—offset by just $1.1 billion in revenue. It’s a stark illustration of Meta’s long-term gamble: that building the next computing platform is worth years of financial bleeding.
A Changing Mixed Reality Landscape
Meta’s head start in VR with Quest headsets has made it a frontrunner in the consumer-facing metaverse race. But the competition is heating up. Apple’s Vision Pro is ushering in a more premium, productivity-focused approach to spatial computing, and Samsung is expected to make its own mixed reality play this year in partnership with Google. For now, Oculus Studios’ reshuffle signals a pivot inward—toward efficiency, tighter teams, and perhaps, fewer experimental moonshots.
The metaverse might still be the future. But in 2025, Meta is learning that the future doesn’t come cheap—and not without sacrifice.
