TL;DR
Reports say Meta will reduce its Reality Labs workforce by about 10%, potentially affecting more than 1,000 employees. The company is also shutting several game studios, while directing savings toward augmented reality efforts as it reallocates resources amid a broader shift toward AI.
What happened
Multiple outlets reported that Meta is planning a reduction of roughly 10% of staff within its Reality Labs division, the unit responsible for the company’s virtual reality and metaverse hardware and software. Reality Labs is said to employ about 15,000 people, meaning the cuts could affect over 1,000 roles. Media accounts also indicate Meta will close or wind down several internal game studios, including Armature Studio, Twisted Pixel and Sanzaru, as well as a technical group called Oculus Studios Central Technology that had been working on VR titles. According to reporting, leadership in Reality Labs called an in-person meeting on January 14. The New York Times noted the layoffs reportedly will not touch teams working on augmented reality hardware, and that funds freed by the reductions are intended to be redirected into AR initiatives. Meta did not immediately comment on the reports.
Why it matters
- Significant headcount reductions at Reality Labs could slow or reshape ongoing VR and metaverse projects.
- Shuttered studios and technical units may interrupt game and content pipelines that support Meta’s VR platforms.
- Redeploying savings toward augmented reality signals a shift in product priorities within Meta’s hardware roadmap.
- The move occurs amid a broader company pivot toward AI, which could affect hiring, resource allocation and research priorities.
Key facts
- Reported reduction: approximately 10% of Reality Labs staff.
- Reality Labs headcount cited at about 15,000 employees; >1,000 roles potentially impacted.
- Studios reportedly being shut down include Armature Studio, Twisted Pixel and Sanzaru.
- A technical unit named Oculus Studios Central Technology, focused on VR titles, was also reported closed.
- The New York Times reported that teams working on augmented reality (AR) are not expected to be affected.
- Saved funds from the cuts are reportedly planned for reinvestment in AR hardware development.
- Reality Labs leadership called an in-person meeting on January 14, according to coverage.
- Reporting places the announcement in the context of Meta’s increasing focus on AI and internal reorganizations.
What to watch next
- Whether Meta issues an official confirmation and provides details on the exact headcount and roles affected.
- How closures of the named studios and the Oculus Studios Central Technology unit will affect specific VR titles and release timelines — not confirmed in the source.
- Progress and timelines for the AR projects reportedly insulated from these cuts, including any public product updates or shifts in staffing.
- Whether additional reorganizations or further resource shifts toward AI or other units follow this round of reductions — not confirmed in the source.
Quick glossary
- Reality Labs: Meta’s internal division focused on virtual reality (VR), augmented reality (AR) and related hardware and software development.
- Virtual Reality (VR): A computer-generated simulation or immersive environment that users can interact with, typically via headsets and controllers.
- Augmented Reality (AR): Technology that overlays digital information or images onto the physical world, often through glasses or smartphone displays.
- Studio: A development team or company that creates games, interactive experiences or content for platforms such as VR headsets.
Reader FAQ
How many Reality Labs employees will be laid off?
Reports indicate a reduction of about 10% of Reality Labs staff; with roughly 15,000 employees in the division, that could be more than 1,000 roles.
Which studios are being closed?
Coverage named Armature Studio, Twisted Pixel and Sanzaru, along with a technical unit called Oculus Studios Central Technology.
Are teams working on augmented reality being cut?
The New York Times reported that employees working on augmented reality were not expected to be affected.
Did Meta respond to these reports and explain the reasoning?
Meta did not immediately respond to requests for comment; reporting links the move to a reallocation of resources toward AR and notes the company’s broader focus on AI, but a direct official statement was not included.
IN BRIEF Posted: 4:51 AM PST · January 14, 2026 IMAGE CREDITS: KELLY SULLIVAN/STRINGER / GETTY IMAGES Ivan Mehta Meta to reportedly lay off 10% of Reality Labs staff Meta…
Sources
- Meta to reportedly lay off 10% of Reality Labs staff
- Meta's VR layoffs, studio closures underscore Zuckerberg's …
- Meta Plans to Cut 10% to 15% of Employees in Reality …
- Meta Reportedly Planning To Lay Off 10% Of Reality Labs …
Related posts
- I’m Hunting for Dumb Tech in 2026 — Time to Choose Simpler Devices
- Parliamentary committee criticizes UK delay on banning AI nudification tools
- Windows 2000 stalls a coastal Portuguese ticket kiosk after memory error