Oculus Studios takes a hit as Reality Labs shifts investment away from the metaverse

Reality Labs downsizes as Meta shifts investment toward wearables

January 13, 2026 (UTC) — Meta has confirmed layoffs affecting around 10% of its Reality Labs division as it reallocates funding away from metaverse-focused work and toward wearables. More coverage: Fix Gaming Channel.

The cuts include shutting down three Oculus Studios teams: Twisted Pixel Games, Sanzaru Games, and Armature Studio.

Sources: The New York Times, The Verge.

Twisted Pixel Games is one of three Oculus Studios teams Meta is closing under the Reality Labs changes.

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