Meta scales back VR ambitions with layoffs and studio closures

Meta began laying off approximately 10% of its Reality Labs workforce, closing several VR game studios and shifting focus toward AI and mobile-friendly experiences for its Horizon Worlds platform. The cuts reflect a strategic pivot away from high-end virtual reality hardware as the company aims to replicate the success of platforms like Roblox to attract younger users on mobile devices. Despite over $70 billion in losses from its metaverse division since 2020, Meta plans to reinvest savings into its successful smart glasses partnership with EssilorLuxottica and ongoing AI development.