Meta Layoffs Impact Oculus Studios & Supernatural VR App

Meta Announces Layoffs in Reality Labs Division

On Thursday, Meta initiated a series of workforce reductions within its Reality Labs division. This division is responsible for the development of a range of virtual and augmented reality initiatives.

Impact on Oculus Studios

The personnel changes specifically affect employees working within Oculus Studios. This studio is dedicated to creating applications and games designed for Meta’s Quest headsets.

While the exact number of employees affected remains undisclosed, Meta confirmed that the cuts involve individuals contributing to Quest products. This includes those involved with Supernatural, a popular VR fitness application.

Acquisition of Within and Restructuring

Meta’s acquisition of Within, the developer of Supernatural, occurred in 2023. The current restructuring is intended to streamline operations and enhance efficiency.

According to a statement provided to TechCrunch, Meta explained that “some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size.”

The company further stated that these adjustments are designed to facilitate more effective work on future mixed reality experiences, while continuing to provide quality content to current users.

Financial Performance of Reality Labs

Reality Labs represents a significant financial investment for Meta. In the final quarter of 2024, the division experienced nearly $5 billion in losses, despite generating approximately $1 billion in revenue.

Since its rebranding from Facebook and increased focus on the “metaverse,” Meta has consistently reported substantial operating losses for Reality Labs annually.

Upcoming Earnings Report and Internal Opportunities

These layoffs precede Meta’s first-quarter earnings report, scheduled for next week. The company anticipates potential scrutiny regarding the escalating costs associated with Reality Labs.

Meta has communicated to TechCrunch that affected employees will be given the opportunity to apply for alternative positions within the company.

Changes to Supernatural App

For users of the Supernatural app, the layoffs will result in a reduced frequency of new workout releases each week.

However, the app will offer each workout at a broader spectrum of skill levels, moving away from a single difficulty option per session.

In a post on Facebook, the app confirmed that the coaches leading the workouts will not be impacted by these changes.

The app will now provide workouts tailored to a wider range of abilities.