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Meta Cuts 1,500 Reality Labs Jobs, Shutters VR Studios, and Winds Down Enterprise VR

Meta blames slower VR adoption, with savings redirected to AI wearables.

A bicyclist rides past a Meta sign outside of the company's headquarters in Menlo Park on March 7, 2023. Meta plans permanent layoffs affecting hundreds of workers in California and Washington as it scales back Reality Labs and shifts investment toward A.I.
Meta’s office in Seattle. The Silicon Valley tech giant plans permanent layoffs affecting hundreds of workers in California and Washington as it scales back Reality Labs and shifts investment toward A.I.
Image
Zuckerberg in smart glasses

Overview

  • Meta confirms eliminating roughly 10% of Reality Labs, about 1,500 roles, as it shifts investment from metaverse projects to AI-powered wearables and infrastructure.
  • State filings show 272 layoffs in California (219 in Burlingame and 53 in Playa Vista) and 331 in Washington, with effective dates in March 2026.
  • Meta has closed first‑party VR studios Armature, Twisted Pixel, and Sanzaru, and moved the Supernatural fitness app to maintenance mode.
  • Meta will discontinue Horizon Workrooms as a standalone app on February 16, 2026, and stop sales of Horizon managed services and commercial Quest SKUs on February 20; existing enterprise customers keep access through January 4, 2030, with licenses free after February 16.
  • CTO Andrew Bosworth says spending is being “right‑sized” because VR growth lagged expectations, and a Meta developer advocate and Oculus founder Palmer Luckey stress the company is not exiting VR, noting cuts largely hit first‑party content teams.