Meta, lays off 700 people due to company-wide restructuring

Meta has reportedly laid off about 700 employees across several business units, including Reality Labs. According to multiple foreign media, the job cuts also affected recruiting, sales, and operations departments and Facebook-related organizations. Currently, Meta’s total number of employees is approximately 78,000.

“Teams across Meta regularly reorganize or introduce changes to achieve their goals,” Meta said. “We are supporting affected employees to find new opportunities internally whenever possible.”

According to industry reports, the job cuts affect several countries, including the United States, and most affected employees were reportedly notified on Wednesday, March 25 (local time).

Second large-scale restructuring this year

This layoff is the second large-scale workforce reduction carried out by Meta this year. Previously, Meta closed three VR game studios at the beginning of the year, reducing 10% of Reality Labs' workforce. The studios that were closed at the time were Twisted Pixel Games, Sanzaru Games, and Armature Studio. Reality Labs is a division in charge of VR and AR technology development, and currently has about 15,000 employees.

Meta has been investing heavily in the Metaverse business since 2022, but has been under constant pressure to cut costs as it has not been able to generate profits as expected. In particular, Reality Labs is recording operating losses of billions of dollars per year, raising concerns among investors.

Metaquest usage is at an all-time high

Meanwhile, Meta announced at the recently held GDC Festival of Gaming that Meta Quest usage reached an “all-time high” in 2025. Chris Pruett, director of metagames, said more than 100 titles have exceeded $1 million in total sales.

Director Pruett also mentioned that the metaverse platform 'Horizon Worlds' is scheduled to be excluded from the Meta Horizon Store in June. “The cycle of experimentation-learning-adjustment is typical for Meta,” he explained. “We take a cautious approach to avoid making unprovable assumptions, and change direction when those assumptions turn out to be wrong.”

This action shows that Meta is maintaining the growth of its VR/AR hardware business while simultaneously improving structural efficiency to improve profitability. However, concerns are being raised about a decline in internal morale and the departure of key talent due to repeated layoffs.