Meta Confirms Massive Layoffs at Reality Labs Affecting VR Developers

The restructuring of Meta✴ also had a serious impact on the research division Reality Labs — employees working on the Quest virtual reality headset, developers of VR games and fitness apps were fired. Among the affected projects is the fitness game Supernatural, which Meta✴ acquired for more than $400 million and defended in court from an antitrust lawsuit.

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The company explained this as a desire to optimize workflows, while promising not to reduce investments in mixed reality (MR) technology, writes The Verge. “Some Oculus Studios teams are going through changes in structure and roles,” said Meta✴ representative Tracy Clayton. “However, this will allow us to more effectively create mixed reality (MR) projects for a growing audience, while continuing to support our current products.”

In parallel with the optimization of the personnel, Meta✴ is facing problems in the sales of VR helmets. While smart glasses — Ray-Ban Smart Glasses — are selling better than expected, the Quest line continues to lose ground. In particular, the Quest 3S headset, released last fall, is already being sold at a discount of about 10% in some configurations.

It should be noted that these are not the first layoffs at Meta✴. The company has previously undergone a wave of layoffs as part of a general cost-cutting strategy. However, new layoffs at Reality Labs indicate a possible revision of priorities in the development of the VR direction. It seems that Meta✴ has decided to bet on MR technology, but the success of this strategy will ultimately depend on the reaction of the market and users, experts believe.