The Reality Labs department of Meta lay off 100 employees to simplify their Virtual Reality and mixed reality projects following substantial financial setbacks.

The Reality Labs division headed by Meta has reduced its workforce to layoff over 100 positions although this unit maintains responsibility for producing Quest headset products that enable virtual reality and augmented reality (VR). The workforce reduction belongs to Meta's companywide transformation after reporting a Q4 2024 financial deficit of $4.97 billion. Oculus Studios suffered most of the job cuts among the gaming development branches at Meta which produces virtual reality experiences including the hit fitness game Supernatural.

Job reductions at Meta do not deter their dedication to gaming and VFX sectors because the company maintains investments in mixed reality experiences. According to Tracy Clayton of Meta the company made these operational modifications to advance their VR and mixed reality product development. The company declares unmoved commitment toward mixed reality technology development through fitness applications and gaming initiatives.

The antitrust trial against Meta about its alleged anti-competitive behavior makes it more difficult for the company to execute its gaming and VFX sector strategies during its current period of restructuring. Meta faces an uncertain virtual reality future because the company must demonstrate the profitability of its investments throughout the progress of the trial.

The Meta VR project's future faces substantial change because it discharged 100 of its workers. The company requires a strategic pivot as it approaches a crucial time when it will need to overcome obstacles in both the gaming and VFX market space.