The layoffs reflect a broader trend in the gaming industry, which has seen significant job cuts at companies like Microsoft and Ubisoft throughout 2025.

However, there are concerns about Meta's long-term commitment to virtual and augmented reality, especially given the substantial investments made in these areas.

Some industry experts worry that VR may follow the fate of consumer 3D TVs, losing popularity and forcing developers to pivot to other gaming opportunities.

Meta's CTO, Andrew Bosworth, emphasized that 2025 is a pivotal year for the company's virtual reality strategy, as the success of their metaverse efforts is at stake.

Meta has laid off dozens of employees across its acquired VR studios, including the fitness app Supernatural, as part of a restructuring effort aimed at enhancing efficiency.

This restructuring comes in response to Reality Labs' significant financial burden, which reported nearly $5 billion in losses in the fourth quarter of 2024 against only about $1 billion in sales.

These layoffs align with CEO Mark Zuckerberg's initiative for a 'year of efficiency,' which previously led to over 10,000 job eliminations in 2023.

Despite these challenges, Meta plans to invest approximately $60 billion in Reality Labs this year, indicating a continued commitment to its VR and mixed reality ambitions.

The timing of the layoffs coincides with an ongoing antitrust trial where the FTC accuses Meta of suppressing competition through acquisitions.

Reports indicate that over 100 employees may have been impacted by these layoffs, particularly in hardware and operations roles.

Affected employees have been encouraged to apply for other positions within the company, although it remains uncertain how many will be rehired.

A tribute on Supernatural's official Facebook group recognized the significant contributions of the departing staff to the game and its community.