InMeta has reportedly laid off approximately 700 employees across multiple parts of its business, with its Reality Labs division among those impacted.

According to reports, the cuts extend beyond Reality Labs and include roles in recruiting, sales, operations, and teams connected to Facebook. Meta currently employs around 78,000 people globally.

In a statement, a company spokesperson said that restructuring is a regular part of how Meta operates, explaining that teams are periodically adjusted to better align with company goals. The spokesperson also noted that efforts are being made to place affected employees into other roles where possible.

Layoffs Span Multiple Regions

The layoffs are believed to affect workers in the United States as well as other regions, with most impacted employees reportedly informed on March 25.

This latest round of cuts follows earlier reductions within Reality Labs, where Meta trimmed roughly 10% of the division's workforce earlier this year. That move also resulted in the closure of three VR studios: Twisted Pixel Games, Sanzaru Games, and Armature Studio.

Reality Labs — Meta's virtual and augmented reality division — employs approximately 15,000 people and remains a central part of the company's long-term metaverse ambitions.

Mixed Signals for Meta's VR Business

Despite the layoffs, Meta has recently highlighted positive performance metrics within its VR ecosystem. During the GDC Festival of Gaming, Meta's director of games, Chris Pruett, stated that Meta Quest usage reached an all-time high in 2025. He also noted that more than 100 titles on the platform have generated over $1 million in revenue.

Pruett also addressed upcoming changes to Meta's ecosystem, including the planned removal of Horizon Worlds from the Meta Horizon Store later this year.

He described Meta's approach as iterative, emphasizing a cycle of experimentation and adjustment based on real-world results.

High Costs Continue to Weigh on Reality Labs

While Reality Labs continues to generate revenue, the division remains costly. Meta reported $2.2 billion in revenue from the unit last year, alongside a significant operating loss of $19.2 billion.

The latest layoffs highlight the ongoing challenge Meta faces in balancing long-term investment in VR and AR with financial sustainability.