Meta layoffs: The vicious cycle continues its alarming job cuts. The latest victim of these official dismissals is the Reality Labs division overseeing the development and marketing of the Quest headset line tied to augmented and virtual reality technologies, as per Reuters. More than 100 people have been affected in these sackings, according to Bloomberg.
The job cuts have impacted teams within Oculus Studios, which Meta’s in-house game development arm for Quest virtual reality headsets. As a result, those directly hit by these layoffs were working on a VR fitness game Supernatural among other such titles.
Addressing the new Meta layoff development, spokesperson Tracy Clayton said in a statement, “These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience.”
Despite the Meta layoffs now in focus, the company claims to remain committed to its mixed reality experiences. “We remain committed to investing in mixed reality experiences, including fitness and games, and our drive to deliver the best experiences possible for the Quest and Supernatural communities remains unchanged,” Clayton stated.
A message shared on the official Supernatural Facebook group read, “Their contributions have been instrumental in shaping our journey and yours, and their absence will be deeply felt.” The company acquired the VR fitness game for more than $400 million. This sale was ultimately targetted in a US government antitrust lawsuit in attempts of blocking it. However, the acquisition was defended.
Meta’s Reality Labs had a reported loss of $4.97 billion in Q4 2024, as opposed to $1.1 billion in revenue.
New Meta layoffs announced as antitrust trial headed into 2nd week
The Meta antitrust trial began on April 14. The Federal Trade Commission (FTC) accusing the company had “engaged in anticompetitive acquisition to protect its dominant position” in personal social networking. In the initial week of hearings, the FTC opposed Mark Zuckerberg’s company by presenting private messages, including a 2012 email in which the CEO said acquiring Instagram would “neutralise a competitor,” according to Fox Business.
In another document dating back to 2018, Zuckerberg reportedly said, “As calls to break up the big tech companies grow, there is a non-trivial chance that we will be forced to spin out Instagram and perhaps WhatsApp in the next 5-10 years anyway.”
With Meta on the hook, the trial enters its second week. Daniel Karon, a lawyer specialising in antitrust class-action lawsuits, told Fox News Digital, “This will be a tough row to hoe.”
He added, “Simply put, the FTC and Meta will fight about what constitutes the relevant market—only interactive social media platforms, meaning Meta controls the market. Or all social media platforms, meaning Meta does not.”