Jan. 17, 2026 — Redmond, Wash. Meta Platforms began laying off approximately 10% of its Reality Labs division workforce this week, impacting around 1,500 of its roughly 15,000 employees as the company pivots from virtual reality and metaverse initiatives toward AI and wearables.
The cuts, which started notifications as early as Jan. 13, disproportionately affect VR teams in the Puget Sound region, including Seattle-area studio Camouflaj and Reality Labs’ large office here.
The layoffs shutter three VR gaming studios—Twisted Pixel Games, Sanzaru Games, and Armature Studio—while halting new content for the Supernatural fitness app and affecting projects like Horizon Workrooms.
Camouflaj, based in Bellevue and known for Batman: Arkham Shadow, was reduced to a handful of employees from about 30, with its sequel canceled. Meta’s Reality Labs office in Redmond’s Willows area, which employed over 1,000 as of 2023, faces impact,s though AR wearables teams are largely spared.
“We said last month that we were shifting some of our investment from Metaverse toward Wearables. This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”
— Meta spokesperson, The Verge
Reality Labs CTO Andrew Bosworth confirmed the cuts in an internal post, stating:
“Starting today, VR will operate as a leaner, flatter organization with a more focused road map to maximize long-term sustainability.”
The move underscores CEO Mark Zuckerberg’s shift to AI, following more than $70 billion in cumulative losses for Reality Labs since 2021 and low adoption of VR products like Quest headsets and Horizon Worlds. Meta plans to redirect resources to AI glasses, mobile Horizon experiences, and hiring top AI talent.
Former employees shared layoff notices on social media. Andy Gentile, ex-Twisted Pixel level designer, posted: “I’ve just been laid off. It appears the entire Twisted Pixel Games studio has been shut down along with Sanzaru and Armature too.”
Puget Sound Business Journal noted Reality Labs’ significant Redmond footprint on X: Puget Sound Business Journal post. Economic Times reported Bosworth’s confirmation: @EconomicTimes post.
The cuts align with earlier reports from The New York Times and CNBC, affecting under 2% of Meta’s total 78,000 employees.
