Meta Shuts 3 VR Studios and Lays Off Hundreds of Devs as It Pivots From Virtual Reality and the Metaverse to AI
January 15, 2026
Meta is laying off around 10% of staff at its Reality Labs division as part of sweeping cuts set to affect more than 1,000 people. This includes the closure of a number of VR-first studios, such as Twisted Pixel, the studio behind Deadpool VR, Resident Evil 4 VR developer Armature Studio, and Asgard’s Wrath maker, Sanzaru Games. According to Bloomberg, the cuts come as Meta pivots away from…