Meta will reportedly make cuts to its staff of VR and AR personnel, as the company switches focus to AI development.
Did AI just kill the Metaverse star? Meta is reportedly making cuts to its Reality Labs unit, shedding 10% of the unit’s workforce which previously focussed on VR related projects.
The company is also reportedly shutting down a number of studios that were working on VR titles. The New York times reported that layoffs will affect more than 1,000 employees, impacting approximately 10% of the hardware division that produces Quest VR headsets, and the Horizon Worlds virtual social network.
The move comes as Meta begins to ramp up its investments in artificial intelligence, spending $14.3 billion in June 2025 to hire Alexandr Wang, founder of Scale AI.
Meta will reportedly close Armature Studio, Twisted Pixel, and Sanzaru, as well as a technical unit, Oculus Studios Central Technology.
Jobs will reportedly also be cut at other studios, including Ouro Interactive, first opened by Meta in 2023 to build first-party content for Horizon Worlds.
Pictured: A MetaQuest 2 headset. Photo credit: ZikG/Shutterstock.com
