At a Glance
- Meta is cutting 10% of Reality Labs staff, affecting over 1,000 people
- VR game studios Armature, Twisted Pixel, Sanzaru, and Oculus Studios Central Tech will close
- Savings will shift to augmented-reality glasses and controllers
- Why it matters: The move signals a strategic pivot from VR to AR as Meta chases AI and wearable computing
Meta is laying off 10 percent of its Reality Labs workforce and shuttering multiple virtual-reality game studios, according to reports from the New York Times, CNBC, and Business Insider. The cuts, confirmed January 14, 2026, eliminate more than 1,000 positions from the division that builds the company’s VR and metaverse hardware.
Job Cuts Hit Core VR Division
Reality Labs employed roughly 15,000 people before the reduction, the New York Times reported. The layoffs spare teams working on augmented-reality glasses and controllers, preserving the company’s push toward wearable devices.
Studios Closing Immediately
CNBC says Meta will wind down:
- Armature Studio
- Twisted Pixel
- Sanzaru Games
- Oculus Studios Central Technology, a technical unit developing VR titles
Leadership Signals Strategic Shift
Business Insider reported that CTO and Reality Labs head Andrew Bosworth labeled the January 14, 2026, all-hands meeting the “most important” in-person gathering of the year. The saved payroll will be redirected to AR development, the New York Times noted.
Meta’s Broader Pivot
The restructuring follows the company’s 2021 rebrand around the metaverse. Recent moves show a new focus on artificial intelligence:
- October 2025: Meta moved metaverse VP Vishal Shah to oversee AI products
- 2025: The firm poached Alexandr Wang from Scale AI to launch Superintelligence Labs
- Meta offered premium compensation packages to lure researchers from rival labs
Meta did not immediately respond to a request for comment from News Of Philadelphia.
Key Takeaways
- 1,000-plus Reality Labs employees will lose their jobs
- VR content teams are being disbanded while AR teams remain intact
- Resources are shifting from virtual reality to augmented reality and AI
- The cuts underscore Meta’s evolving priorities beyond the metaverse vision it championed in 2021
