April 24 (UPI) — Meta has laid off employees who worked in its Reality Labs division on developing virtual and augmented reality systems and the wearable devices that use them, the company announced Thursday.
The company was not specific about the number of layoffs but told CNBC that the personnel cuts will be specific to people working in Meta’s Oculus Studios unit, which develops the technology and content used in games on its Quest VR headset.
“Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size,” a spokesperson told CNBC. “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.”
Supernatural, a VR fitness game that Meta acquired for more than $400 million, is among the consumer products affected by the layoffs. Meta had to fight off an antitrust lawsuit to make that purchase in 2023.
The Federal Trade Commission tried to stop the acquisition of Supernatural, arguing then that it would create more unchecked Meta dominance in the consumer VR market.
The layoffs at Reality Labs come on the heels of a 5% layoff of Meta’s overall workforce in February, which the company said then was designed to root out its lowest performers.
Reality Labs reported a loss of $4.9 billion in its fourth quarter earnings report, and only $1.1 billion in sales, the company said in January, which was among the cost cutting moves behind the sweeping February staff reduction.
