Meta’s Reality Labs is reportedly laying off up to 10 per cent of staff in cutbacks that now include the shuttering of multiple internal studios for Meta Quest games.
Studios set to shut down include Armature, Twisted Pixel and Sanzaru Games, which have been responsible for some of the Meta Quest titles, while Supernatural is reportedly being severely downsized.
Armature produced the VR port of Resident Evil 4, Sanzaru Games made the Asgard’s Wrath titles, while Twisted Pixel made Marvel’s Deadpool VR.
These closures have been confirmed by The Verge, while Supernatural — which maintains fitness app Supernatural VR — will reportedly operate as a skeleton staff.
“Due to recent organizational changes to our Studio, Supernatural will no longer receive new content or feature updates starting today,” the developer wrote on a Facebook community page.
These closures and scaling back of staff are happening just a few years on from the studios’ acquisitions by Meta. The company acquired Twisted Pixel and Armature Studio in 2022, and Sanzaru Games in 2020.
Wider Reality Labs layoffs’ upper estimates are in the 1500 range, based on plans to cut staff numbers by 10%.
Play Puzzles & Games on Forbes
Meta Quest Reality Check
These cuts have not come out of the blue. In December 2025, Bloomberg reported Meta was planning to reduce Reality Labs budgets by up to 30% in a strategic shift.
While Meta is not abandoning its costly Metaverse project entirely, it is refocusing its efforts on augmented reality glasses.
Ray-Ban Meta glasses have proved fairly popular, and the series recently got a major upgrade.
Meta announced the Meta Ray-Ban Display Glasses in September 2025. They have an in-vision display, where older versions of the hardware rely on audio feedback and a camera only.
Meta has delayed a planned launch of the glasses outside of the U.S. in early 2026 due to high demand within the U.S. alone. That is despite a relatively high starting cost of $799, including wristband controller.
The Reality Labs division of Meta has lost more than $70 billion since it was established in 2020. This is despite the Meta Quest 2 in particular selling enough units to be considered a mainstream hit, with more than 20 million units shifted.