Meta has shuttered three virtual reality studios as part of a 10% reduction in its Reality Labs metaverse division

Following a significant reduction of 10% in its Reality Labs division, Meta has decided to close three virtual reality (VR) development studios. These closures are a consequence of corporate restructuring.

According to Bloomberg, these closures were revealed in an internal document. The affected studios are Twisted Pixel Games, recognized for Marvel's Deadpool VR; Sanzaru Games, known for Asgard's Wrath; and Armature Studio, responsible for the Resident Evil VR adaptation.

The shutdown will also affect Within, the developer of the VR fitness application Supernatural, which will cease more feature additions, although existing support for the app will continue.

A Meta representative, Tracy Clayton, provided confirmation to The Verge that Bloomberg's content accurately portrays what's happening.

Individuals formerly employed at these studios, like ex-Twisted Pixel level designer Andy Gentile and ex-Sanzaru senior level designer Ray West, have discussed the studio closures on social media.

Historically, Meta acquired Sanzaru in 2020 and both Twisted Pixel and Armature in 2022. The acquisition of Within was completed in 2023 despite initial objections from the Federal Trade Commission.

The layoffs tied to Reality Labs may impact up to 1,000 workers, with Meta expressing in a recent statement that it intends to redirect some of its previously metaverse-focused investments toward wearable technology.

The company indicated that this approach is part of its broader strategy, planning to allocate savings towards expanding its offerings in the wearables market throughout the year.