Meta started another work of work cuts within the division of reality labs, the unit responsible for virtual and enlarged reality projects.
The company has confirmed that more than 100 employees have been affected, especially at Oculus Studios (the arm of this VR content) and the Supernatural Fitness Game team. Meta said these changes aim to stream development for experiences in mixed reality, but it emphasizes that its commitment to the headset ecosystem and apps such as the supernatural remains intact.
As a speaker puts it, “some teams within Oculus studios are subject to structural changes and roles that affect team size,” and deductions will help the studio “work better in future reality experiences.”
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Reality labs have become a significant financial burden. In the fourth quarter of 2024, it recorded an operating loss of nearly $ 5 billion to nearly $ 1.1 billion in sales. The division posted multi-billion-dollar losses in operation annually since Facebook was rebranded as meta and made “metaverse” as the center of its approach.
These figures coincide with a broader cut-cutting drive throughout the company: earlier 2025, the meta filed its global headcount by almost 5%, about 3,600 jobs, in a push for performance and efficiency. Despite mounting the losses, CEO Mark Zuckerberg has maintained that he remains optimistic about Meta's long-term commitment to AR and VR technologies.
Many investors take care of the metaverse metavers of the meta. The company's stock is largely theflatline as analyst questions as to whether the big VR and AP costs will pay. Even their own meta executives recognize the stakes. CTO Andrew Bosworth has warned of an internal memo of 2025 “It is likely to determine whether this whole effort will decrease as the work of visionaries or a legendary false error.” Observers note that the meta is effective in developing VR and AR while seeking to include those platforms in the main advertising and social media business.
This change follows comments from Zuckerberg and other executives emphasizing that they will prioritize projects that will not quickly return to the main ecosystem of Facebook and Instagram, focusing on artificial intelligence, which improves ads, and avoiding headcounting uncontrollable growth. Historically, the price of the meta sharing fell dramatically as investors expressed doubt about its expensive metaverse bet even though the company posted failures in forecasts.
Adding to Meta's challenges is an unprecedented antitrust test. US regulators claim that the meta has illegally built a monopoly on the social network by buying an increase in rivals, especially Instagram in 2012 and WhatsApp in 2014, rather than competing with them.
Prosecutors featured Zuckerberg's own words: Before dealing with Instagram he said he needed to “neutralize a potential competitor,” and before buying WhatsApp he warned it “a big risk” on Facebook. FTC's lawyer bluntly argued that Meta's leadership decided that the competition was too difficult, so it was easier to buy its rivals instead of competing with them.
Experts note that if the FTC prevails, it can be forced to relieve that meta – effectively break the main $ 1.3? Trillion advertising business that funded other adventures. That would be a historic outcome, emphasizing the legal risk facing the meta as it defends both the previous approach and future plans.
Meta executives insist that the company can manage these headwinds while continuing to invest in its vision. Zuckerberg told analysts that the meta would grow its investment envelope before seeing significant income from new products, which signed a willingness to absorb losses so far. But outside the analysts are cautious of patience, noticing that investors remain skeptical of growing technology expenditure, and warning that such an ambitious bet may take years to pay. In practice, the meta appears to be re -focused on reality labs.
The reports suggest that it has been stylish or slowed down fewer VR content projects to concentrate on basic hardware and services. The company has clearly proven that it is focused on investing in mixed reality experiences, including fitness and games, and its drive to deliver the best search and supernatural experiences that remain unchanged.
