^{Source: People Matters ANZ}

Overview

Meta Platforms Inc. has initiated a significant restructuring within its Reality Labs division, resulting in the layoff of over 100 employees. This move affects key teams, including Oculus Studios and the Supernatural VR fitness app, as the company seeks to streamline operations and concentrate on the future of mixed reality experiences.​‍

Details of the Layoffs

The layoffs primarily impact Oculus Studios, Meta's in-house game development unit for Quest headsets, and the Supernatural VR fitness app team. These changes are part of a broader strategy to enhance efficiency within Reality Labs, which has been under financial scrutiny due to substantial operating losses.​

A Meta spokesperson stated, "Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size. 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 Supernatural team acknowledged the layoffs in a Facebook post, expressing that the contributions of the affected employees have been instrumental in shaping their journey and will be deeply missed.​

Financial Context

Reality Labs has been a significant investment area for Meta, with the division reporting an operating loss of $4.97 billion in the fourth quarter of 2024, against $1.1 billion in revenue. These figures highlight the financial challenges Meta faces in its pursuit of establishing a foothold in the metaverse and mixed reality markets.​

Earlier in the year, Meta laid off approximately 4,000 employees, about 5% of its workforce, as part of CEO Mark Zuckerberg's "Year of Efficiency" initiative aimed at improving performance and reducing costs.​

Future Outlook

Despite the layoffs, Meta continues to invest in mixed reality experiences, including fitness and gaming. The company has 495 open positions within Reality Labs, indicating ongoing efforts to align talent with strategic priorities.​

Chief Technology Officer Andrew Bosworth emphasized the critical nature of 2025 for Reality Labs, stating that this year will determine whether the company's efforts in mixed reality will be seen as visionary or a misadventure.​

As Meta prepares to release its first-quarter earnings report next week, stakeholders will be closely monitoring how the company plans to navigate the financial and strategic challenges associated with its ambitious mixed reality initiatives.​

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