Meta has initiated another round of layoffs, this time impacting its Reality Labs division — the team behind its ambitious push into virtual and mixed reality technologies. According to Financial Express, over 100 employees have been laid off, particularly those involved with Oculus Studios, the in-house game development team responsible for titles on the Quest virtual reality headset.
Among the most affected were developers of Supernatural, a VR fitness game that Meta had previously acquired for more than $400 million. The game — which became a point of contention in a United States government antitrust lawsuit — now sees its development team reduced significantly. At the time of the acquisition, US regulators attempted to block the purchase, but Meta successfully defended the move.
As reported by Financial Express, Meta spokesperson Tracy Clayton commented on the restructuring, stating, “These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience.” Clayton further emphasised that Meta remained committed to the Quest and Supernatural user bases, adding, “Our drive to deliver the best experiences possible... remains unchanged.”
A message shared on Supernatural’s official Facebook group paid tribute to the departing staff, stating that their efforts had been “instrumental in shaping our journey and yours.”
These job cuts come at a time when Meta’s Reality Labs continues to incur major losses — $4.97 billion in Q4 2024 alone, against revenue of $1.1 billion.
The layoffs also coincide with the second week of Meta’s ongoing antitrust trial. The Federal Trade Commission (FTC) has accused the company of using acquisitions to suppress competition in the social networking space. Private messages presented in court have included a 2012 email from CEO Mark Zuckerberg citing Instagram’s acquisition as a move to “neutralise a competitor.” Daniel Karon, a lawyer specialising in antitrust class-action lawsuits, told Fox News Digital, “This will be a tough row to hoe.”
