Meta's Metaverse Division Faces Significant Layoffs Affecting VR Studios

Meta has initiated substantial layoffs affecting around a tenth of its Reality Labs metaverse segment, resulting in the shutdown of several VR game development studios.

Twisted Pixel Games, a team known for Marvel's Deadpool VR, Sanzaru Games, the creators of the Asgard's Wrath series, and Armature Studio, renowned for their work on the Resident Evil 4 VR port, are reportedly among the closures, as shared by Andy Gentile, a former level designer at Twisted Pixel.

Impact on Developers

Numerous employees who were laid off have taken to social media to talk about the impact, affirming the closure of these game development firms.

Meta's Strategy Shift

A spokesperson from Meta, Tracy Clayton, commented that the company is redirecting some investments from the Metaverse towards the development of wearable technology. The savings from these restructuring efforts are intended to fuel growth in this new direction.

Meta had previously acquired the studios of Twisted Pixel, Armature, and Sanzaru, and had also shut down Ready at Dawn, another company it had taken under its wing.