‘VR winter’ fears mount as Meta slashes Reality Labs workforce
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Meta has put the brakes on its virtual reality push, causing worry among developers who built their careers around the technology that once seemed central to the company’s future plans. The social media company cut roughly 1,000 workers from its Reality Labs division last week, representing a 10% reduction in that unit’s workforce, according to CNBC. The job losses hit teams working on Quest VR headsets particularly hard. Groups developing Horizon Worlds, Meta’s social VR platform, saw significant cuts, and the company closed down some of its internal production studios. Expensive vision loses momentum Reality Labs will now concentrate more on wearable technology, such as its Ray-Ban Meta smart glasses produced in collaboration with partner EssilorLuxottica, and artificial intelligence initiatives, according to Meta. Beyond its first release, the firm declined to speak further. For a corporation that prioritized virtual reality only a few years ago, the withdrawal represents a significant shift. The current VR market began when Meta paid $2 billion to acquire Oculus in 2014. When CEO Mark Zuckerberg renamed Facebook to Meta, it signaled his commitment to building what he called the metaverse, interconnected digital worlds where people would work and play. However, that vision has proven expensive. Reality Labs has burned through more than $70 billion in losses since late 2020. “I can see how it feels like a VR winter,” said Jessica Young, who makes content for Horizon Worlds as an independent creator. The company’s shift became clear at its Connect conference in 2025. Meta typically unveils new Quest headsets at these fall gatherings, but this time around, no VR hardware appeared. Instead, the company showed off its $799 Meta Ray-Ban Display glasses, which feature a small built-in screen. “If Meta’s not putting out a new headset for another year or two, it’s going to feel…
Filed under: News - @ January 24, 2026 4:23 pm