Meta Reality Labs Layoffs Impact Oculus Studios and Supernatural Teams

Meta has initiated a new round of layoffs within its Reality Labs division. Reports indicate that employees working on virtual reality (VR) projects, including those involved with the VR fitness app Supernatural, have been affected. According to The Verge, an announcement posted in Supernatural's official Facebook community stated, "These changes are designed to help us work more efficiently as we explore the future of fitness."

The layoffs primarily impacted teams within Oculus Studios, Meta's internal game development division responsible for creating content for the Quest VR headset. Notably, employees who worked on Supernatural—a project Meta acquired in 2023 for over $400 million—were also among those affected.

This restructuring follows a reported $5 billion loss by Meta’s Reality Labs division in Q4 2024. The company has also faced challenges in developing custom chips for its AR/VR devices. Facebook Agile Silicon Team (FAST), tasked with creating proprietary chips, reportedly struggled to produce components competitive with external suppliers. Consequently, the tech giant continues to rely on Qualcomm for chips in its current devices.

Despite these setbacks, CEO Mark Zuckerberg remains committed to the company's long-term strategy centered on augmented and virtual reality technologies. Recently, under Zuckerberg’s leadership, Meta announced a significant expansion of its Ray-Ban Meta smart glasses, introducing advanced AI features and preparing for launches in new markets such as India, Mexico, and the UAE. The company rolled out its "live translation" feature to all Ray-Ban Meta smart glasses users globally.

Prior to this latest development, Meta reorganized Reality Labs into two main groups: the metaverse division, encompassing the Quest headset series and Horizon platform, and the wearables division, which includes smart glasses developed in collaboration with Ray-Ban. This restructuring aims to create a more integrated hardware, software, and user experience.

It is worth noting that Meta has undergone several rounds of significant layoffs in recent years. In February 2025, the company cut approximately 3,600 jobs, around 5% of its global workforce. Even in 2024, targeted layoffs occurred across its Instagram, WhatsApp, and Reality Labs divisions. Additionally, the company laid off 11,000 employees in 2022 and another 10,000 in 2023.

Interestingly, the latest layoffs occurred a day after Meta was fined €200 million ($228 million) by the EU for violating the Digital Markets Act. The commission penalized the company for breaching tech laws with its ad-free service model on Instagram and Facebook.