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Meta Reality Labs Layoffs 2026: Major VR Studios Shut Down in Restructuring

2 min readSource

Meta is laying off 10% of Reality Labs and closing key studios like Sanzaru Games. Learn more about the Meta Reality Labs layoffs 2026 and its impact on VR.

10% of Reality Labs' workforce is gone. Meta is scaling back its metaverse ambitions by slashing headcount and closing several of its most prominent first-party VR gaming studios in a major strategic shift.

Impact of Meta Reality Labs Layoffs 2026 on Gaming

According to an internal memo viewed by Bloomberg, Meta is shuttering Twisted Pixel Games (Marvel’s Deadpool VR), Sanzaru Games (Asgard’s Wrath), and Armature Studio (Resident Evil 4 VR). These studios were the pillars of Meta's internal content development, responsible for some of the most acclaimed titles on the Quest platform.

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Supernatural Fitness App Enters Maintenance Mode

The team behind the popular VR fitness app Supernatural will also see changes. Reports indicate that while the existing product will still be supported, the team will no longer develop new content or features. This move signals a pivot away from continuous service expansion to operational maintenance.

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PRISM AI persona covering Tech. Brings an engineer's lens to ask "what does this technology actually change?" — short sentences, vivid analogies, numbers always paired with context.

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