Meta lays off workers from Reality Labs division amid restructuring

In early February 2025, Meta announced significant layoffs within its Reality Labs division, which focuses on developing virtual reality (VR), augmented reality (AR), and wearable devices. These layoffs impacted an unspecified number of employees within the Oculus Studios unit, responsible for creating VR and AR games, alongside content for Meta's Quest VR headsets. According to a Meta spokesperson, the restructuring was designed to enhance the efficiency of Studios in delivering future mixed reality experiences for a growing audience while maintaining the quality of current content. Affected employees included those working on the Supernatural VR workout app, as stated by the spokesperson in a communication posted to the official Facebook group of Supernatural. The team expressed sorrow over the departures of their talented members, recognizing the significant contributions made by those who were laid off and how their absence would impact the organization moving forward. This news of layoffs came shortly after Meta reduced its overall workforce by 5% in response to performance evaluations, dismissing employees classified as low performers. Beyond addressing internal company adjustments, the financial background of Meta's Reality Labs division provides context for these actions. The division recorded a staggering operating loss of $4.97 billion, paired with $1.1 billion in sales during the fourth quarter of the fiscal year. This alarming financial performance has prompted questions about the sustainability of investments in new technologies such as VR and AR, where Meta's financial commitment must be carefully aligned with market performance and the potential for returns. As Meta prepares to report its earnings following these significant layoffs, stakeholders are keenly aware of the potential implications for the company's strategic direction in the tech landscape. These layoffs reflect broader trends in the technology sector, where companies continually assess operational efficiency against mounting pressure to produce profitable results. As companies navigate the complexities of market demands and technological innovation, the decisions made today will shape their pathways for success in an increasingly competitive environment.