Meta is the latest major company in the games and tech industries to lay off staff, as it has cut a number of jobs from Reality Labs and closed several studios. Among those affected were Sanzaru Games, the developer of Asgard’s Wrath; Twisted Pixel Games, the developer of Marvel’s Deadpool VR; and Armature Studios, the developer of the VR port of Resident Evil 4. All three studios appear to have shut down entirely.
The New York Times first reported yesterday that Meta planned to cut 10-15% of staff from its Reality Labs division, and it appears that these cuts have begun today. Several of those affected employees have revealed on social media that they’ve been affected by layoffs. Upload VR has also confirmed that all three studios have been shut down.
The Times report claims that these layoffs are part of a shift in Meta’s priorities, with the company moving from a focus on the metaverse (ironically) and virtual reality to AI research and wearables development. Meta previously closed several other acquired game studios, including Ready at Dawn in 2024 and Downpour Interactive last year, the latter having been merged with Camouflaj.
Layoffs in the video games industry have been a recurring story since 2022. According to videogamelayoffs.com, over 30,000 people have lost their jobs in the last few years. Gaming jobs advocate Amir Satvat said in a recent interview with GamesBeat that the amount of layoffs have slowed from 2024 to 2025, but they have not stopped entirely.