Meta has defended recent workforce reductions inside its virtual reality division, citing slower-than-expected user growth. Meta layoffs were discussed publicly by the company’s technology leadership during the World Economic Forum in Davos. The issue matters as Meta continues to reassess long-term bets in immersive technology.
What changed in Meta layoffs strategy
Meta chief technology officer Andrew Bosworth said the cuts were driven by practical investment decisions. Speaking on a podcast recorded at the forum, he stated that VR headsets have not scaled as quickly as anticipated. As a result, the company chose to adjust spending while maintaining selective investment.
Bosworth said Meta remains committed to immersive technology but must align funding with current growth rates. He described the approach as ensuring investments are “right-sized” when adoption slows.
How Meta layoffs affect Reality Labs
The restructuring impacts Meta’s Reality Labs division, which leads its metaverse and VR initiatives. Around 10 percent of employees working on metaverse-focused VR projects are being cut. Reports indicate more than 1,000 roles are affected.
Job losses include positions tied to Quest VR hardware and Horizon Worlds, Meta’s virtual social platform. Several internal studios developing VR games and experiences are also being shut down. These include Armature Studio, Twisted Pixel, and Sanzaru, along with Oculus Studios Central Technology.
Impact of Meta layoffs on product direction
Meta is also winding down enterprise-focused VR offerings. The company confirmed it will discontinue Horizon Workrooms as a standalone app from February 16, 2026. Sales of Quest headsets and Horizon managed services for business customers will stop from February 20, 2026.
Existing enterprise users will retain access until January 4, 2030. Meta said licences will become free after February 16, 2026.
The shift follows Meta’s October 2021 rebrand announced by chief executive Mark Zuckerberg, when VR was positioned as central to the company’s future. In December 2025, Meta said it would reduce VR spending and redirect funds toward AI-powered glasses and wearable devices.
