Meta, the tech giant behind Facebook and Instagram, has confirmed layoffs in its Reality Labs division, which focuses on virtual and augmented reality experiences. The cuts, which affect an unspecified number of employees, target teams working on Supernatural, a VR fitness game acquired by Meta for over $400 million, as well as other Quest apps.

The layoffs also impact some employees involved in Meta's hardware efforts, according to people familiar with the matter. A note on the official Supernatural Facebook group states that the changes are meant to help the company "work more efficiently on what the future of fitness could be." Meta spokesperson Tracy Clayton confirmed the layoffs, saying that some teams within Oculus Studios, Meta's in-house games division for Quest headsets, are undergoing shifts in structure and roles that have impacted team size.

The move comes as Meta's Quest sales continue to struggle. The latest Quest 3S, released last fall, is currently on sale for roughly 10 percent off in some configurations. In contrast, sales of Meta's smart glasses with Ray-Ban have grown faster than the company expected. The layoffs may be an attempt to restructure and refocus the Reality Labs division to better align with the company's goals and priorities.

Meta has been investing heavily in mixed reality experiences, including fitness and games, and the company remains committed to delivering the best experiences possible for the Quest and Supernatural communities. However, the layoffs suggest that the company is reassessing its approach and looking for ways to work more efficiently. The move may also be part of a broader effort to cut costs and streamline operations, as Meta faces increasing competition in the tech industry.

This is not the first time Meta has made layoffs in recent months. In February, CEO Mark Zuckerberg announced plans to lay off more "low-performers" in the company. Additionally, Meta fired 20 employees for leaking confidential information. The latest layoffs in Reality Labs may be a sign of the company's ongoing efforts to adapt to changing market conditions and refocus its resources on key areas of growth.

The layoffs in Reality Labs also highlight the challenges facing the virtual and augmented reality industry as a whole. While VR and AR have shown promise, they have yet to achieve mainstream adoption. The struggles of companies like Meta, which has invested heavily in VR and AR, may be a sign of the industry's growing pains.

As Meta navigates these challenges, the company's commitment to investing in mixed reality experiences remains unchanged. However, the layoffs in Reality Labs suggest that the company is willing to make tough decisions to ensure its long-term success. The move will likely be closely watched by investors and industry observers, who will be looking for signs of how Meta plans to revitalize its struggling VR business.