Meta Restructures VR Studios Amidst Broader Layoffs
january 14, 2026
Meta Streamlines Oculus Studios
Recent reports confirm that Meta is undergoing a meaningful restructuring within its VR division, Oculus Studios, as part of a larger wave of layoffs impacting the company. Several studios dedicated to creating immersive content have been heavily affected, signaling a shift in Meta’s metaverse strategy.
Studios Facing closure or Reduction
According to sources familiar with the matter, the following studios have been significantly impacted:
- Twisted Pixel (known for deadpool): The entire team has been reportedly let go.
- Armature (known for Resident Evil 4): The studio has been dissolved, with a game in progress as 2022 now uncertain.
- Sanzaru Games (known for Asgard’s Wrath): The team has been fully impacted by the layoffs.
- Within (known for supernatural): The studio is facing significant downsizing.
Remaining Studios and Future Focus
Meta is consolidating its VR content creation efforts around a smaller core group of studios.These include:
- Beat Games (Beat Saber)
- BigBox (Population: One)
- Camouflaj (Batman)
- Ouro and Glasswords: These studios will continue to focus on developing games and experiences for Horizon Worlds.
Official Confirmation Pending
As of this report, Meta has not officially confirmed the closure of these studios. However, multiple sources within the virtual reality community have corroborated the facts. The future of the unreleased Armature Studio game,which had been in development for several years,remains unclear.
Implications for the Metaverse
This restructuring suggests a recalibration of Meta’s metaverse ambitions. While the company remains invested in virtual and augmented reality, it appears to be prioritizing projects with clearer paths to profitability and user engagement. The reduction in studio headcount indicates a more focused approach to content creation, potentially emphasizing experiences within Horizon Worlds and popular titles like Beat Saber and Population: One.
