The future of virtual reality rarely shifts. But this time it may have arrived in a different way. Meta has confirmed it was cutting more than 1,000 jobs from its Reality Labs division. The move was instantly perceived as a verdict on the company’s most ambitious gamble – the metaverse.
Naturally, the move has stirred debates about its dedication to virtual reality.
Is it a troubling signal?
It has also raised questions about automation and criticism that CEO Mark Zuckerberg is retreating from a struggling metaverse vision.
That said, Oculus founder Palmer Luckey has backed the move.
Luckey has previously worked at Meta. He was later dismissed following controversy over his political views.
For the unversed, Luckey was once central to Meta’s VR strategy. According to reports, he was fired from the company, then called Facebook. That was because a controversy erupted over a donation he made to a pro-Trump group.
Facebook initially denied political motivations behind his departure. However, Luckey was dismissed in March 2017 after a period of leave. As a report highlighted, the circumstances of his exit remained contentious for years.
And now, Luckey and Meta have formally reconciled. They are working together on military technology initiatives.
He has argued that the cuts could ultimately strengthen the health of the VR ecosystem rather than weaken it.
In an extended post on X, Luckey acknowledged that his perspective diverges sharply from prevailing views across the VR industry and media. “This is not a disaster. They still employ the largest team working on VR by about an order of magnitude. Nobody else is even close. The ‘Meta is abandoning VR’ narrative is obviously false. A 10% layoff is basically six months of normal churn concentrated into 60 days, strictly numbers-wise,” he reportedly wrote, rejecting claims that Meta is walking away from virtual reality.
According to Luckey, the scope of the layoffs (estimated at around 10 per cent of Reality Labs’ workforce) has been exaggerated. While he recognised the disruption and distress caused by such a rapid reduction, he maintained that the cuts do not undermine Meta’s position as the leading force in VR development.
Luckey also pointed to where the reductions were concentrated. He said most of the roughly 1,500 eliminated roles were linked to first-party content teams — internal studios producing games that competed directly with independent developers. He argued that this dynamic skewed the market, as Meta-owned studios benefited from substantial financial backing, marketing advantages and preferential placement on the platform.
“Crowding out the rest of the ecosystem makes even less sense. Every developer, big and small — even the hyper-efficient ones — has had an extremely hard time competing with games developed by Meta-owned teams with budgets that vastly exceed their earning potential,” he was quoted as saying.
Luckey’s remarks come as Meta undertakes a broader restructuring of Reality Labs amid increasing financial strain. A Bloomberg report indicates that more than 1,000 employees are being laid off from the division, which has a workforce of approximately 15,000. Affected employees were reportedly notified through an internal post from Chief Technology Officer Andrew Bosworth.
Alongside the layoffs, Meta is said to be reducing certain VR investments to improve long-term sustainability. It has redirected resources towards AI-driven wearables and mobile-first products.
The company is also expanding its focus on AI hardware. That reportedly includes talks with EssilorLuxottica SA to increase production of smart glasses.
Also Read: Tech Layoffs Surge As Amazon Leads Latest Wave of Job Cuts https://www.vibesofindia.com/tech-layoffs-surge-as-amazon-leads-latest-wave-of-job-cuts/
