Meta has made headlines again for laying off employees in its acquired game studios, specifically within the virtual reality (VR) sector. This time, the layoffs affect studios behind some of the most popular Meta Quest titles, including Within Unlimited, Inc. (known for VR fitness game Supernatural) and Sanzaru Games (responsible for Asgard’s Wrath). As layoffs continue to rock the gaming industry, Meta’s restructuring comes as part of a broader trend seen across major companies in 2025.
The Ongoing Trend of Gaming Industry Layoffs
Unfortunately, layoffs within the gaming industry have become all too familiar in recent years. In 2025 alone, several high-profile companies, including Microsoft, Bandai Namco, Ubisoft, BioWare, and Eidos Montreal, have made similar announcements. Meta’s recent layoffs mark the second round of staff cuts this year, following a significant 3,600-job reduction in February.
Meta’s VR Studios Affected: Supernatural and Asgard’s Wrath Hit Hard
Meta’s layoffs are notably impacting its VR game development efforts, particularly in relation to the Meta Quest platform. Supernatural, a VR fitness game developed by Within Unlimited, and Asgard’s Wrath, created by Sanzaru Games, are at the center of the layoffs.
A Meta spokesperson confirmed the cuts, stating that “some teams within Oculus Studios are undergoing shifts in structure and roles.” While the layoffs are not limited to the game studios alone, the impact on these two VR games is already being felt by players.
Impact on Supernatural: Slower Workout Releases
Supernatural, which has gained a devoted following for its unique blend of fitness and gaming, has confirmed that the layoffs will lead to a slowdown in the release of new workouts. However, the developers have reassured players that multiple intensity options will be added to existing workouts to ensure a continued engaging experience. While the change may not have a massive effect on day-to-day gameplay, it is still a notable shift for the fanbase.
Meta’s Ongoing Restructuring Efforts
In February 2025, Meta cut approximately 3,600 jobs, accounting for around 5% of its total workforce. At that time, the layoffs were attributed to performance-based evaluations. Despite these cuts, Meta appears to have made the decision to downsize further, impacting teams within its gaming and hardware divisions.
Bloomberg reports that the laid-off employees have been invited to apply for alternate roles within the company, although it is unclear how many will be reabsorbed into the Meta ecosystem.
Meta’s layoffs in its acquired VR studios represent a significant shift in the company’s strategy within the gaming industry. As it continues to restructure and focus on efficiency, the future of Meta’s gaming endeavors—particularly in virtual reality—remains uncertain. While Meta Quest continues to be a flagship platform for the company, the scaling back of development teams may signal a broader rethinking of its role in the gaming world. Only time will tell if Meta’s gaming ambitions will continue to thrive, or if the company will pivot to new technological frontiers.