Meta is said to have dismissed approximately 700 employees, with its Reality Labs division experiencing the impact

In a recent move, Meta has trimmed approximately 700 positions spanning various departments, notably including its Reality Labs sector.

The roles impacted encompass areas such as recruitment, sales, and operations, along with Facebook, as detailed by a report from The New York Times. With a workforce of 78,000, the company is navigating these changes.

A representative from Meta explained: "We periodically restructure teams or make necessary changes to remain aligned with our objectives. We strive to reposition affected employees whenever feasible."

As reported by Bloomberg, the downsizing could affect employees both within the United States and internationally, with most being notified on March 25.

Earlier this year, the company had already reduced its Reality Labs team by 10%, leading to the closing of three virtual reality studios: Twisted Pixel Games, Sanzaru Games, and Armature Studio. This division employs about 15,000 people.

Despite these challenges, during the GDC Festival of Gaming, Meta's games director Chris Pruett announced that Meta Quest usage had reached record levels in 2025, noting over 100 titles achieving more than $1 million in revenue.

Pruett also touched upon the planned removal of the Horizon Worlds virtual realm from the Meta Horizon Store, slated for June.

"The system of testing, learning, and readjusting is a standard approach at Meta," Pruett mentioned. "We avoid drawing conclusions without empirical support, and shift direction when the evidence suggests we're on the wrong path."

Last year, Meta's Reality Labs registered $2.2 billion in sales, yet faced a substantial $19.2 billion in losses.