Meta cuts off employees working on Virtual Reality in Reality Labs Division

Mark Zuckerberg’s Meta had laid off unspecified employees working and developing Virtual Reality Products in its Reality Labs who are tasked with developing virtual reality, augmented and related wearable devices, reports CNBC. The successful CEO opened his company’s virtual reality endeavors in 2014 after acquiring the Oculus Studios for $2 billion.

The Meta Reality Labs division recorded an operating loss of $4.97 billion while generating $1.1 billion in sales during the fourth quarter in January 2025. 

“Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size,” a spokesperson reported to CNBC. “These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience, while still delivering great content for people today.”

The lay off of unnumbered employees in Oculus’ Studios Unit where the employees were working on developing VR (Virtual Reality) and AR (Augmented Reality) Games and the core contents for Meta’s immersive Quest VR Headsets. 

The lay off was announced in their official Supernatural Facebook group that said, “We’re deeply saddened to share that these changes have resulted in the loss of some of our incredibly talented team members. Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt.”

The layoff also comes after Meta’s report from February when the company laid off 5% of its overall workforce, marking it as their lowest performance, as reported by The Verge.