Meta cuts 1,000 jobs: Oculus founder calls it smart move

Meta has announced another round of job cuts, reducing its workforce by over 1,000 employees from its Reality Labs division, according to reports.

While many see these layoffs as a sign that Meta is struggling with its virtual reality and metaverse plans, Oculus founder Palmer Luckey has reportedly defended the decision, calling it a practical and forward-looking step.​

Luckey, who originally founded Oculus and later joined Meta, believes the layoffs are being misunderstood. In a detailed post on the social media platform X, he said that Meta is far from giving up on virtual reality. According to him, Meta still has the largest team working on VR in the world, much bigger than any of its competitors.​

He explained that the cuts amount to around 10 percent of the Reality Labs workforce, which he described as similar to regular employee turnover happening all at once. While he acknowledged that such sudden layoffs can be painful for workers, he said they do not weaken Meta’s leadership in the VR space.

Luckey also pointed out that most of the removed positions were from Meta’s internal game development teams. These teams were creating games that directly competed with independent developers on Meta’s own platform. He argued that this created an unfair situation, as Meta-backed studios had larger budgets, better promotion, and stronger visibility, making it extremely hard for smaller developers to survive.​

According to Luckey, reducing this internal competition could actually help the VR industry grow. He said that when big companies dominate their own platforms, it discourages innovation and hurts smaller creators who are essential to a healthy ecosystem.​

Ironically, Luckey himself was fired from Meta in 2017 after controversy related to his political views and a donation he made to a pro-Trump group. Although the company denied political reasons at the time, his exit remained a topic of debate for years. As of 2026, however, Luckey and Meta have repaired their relationship and are now working together on military technology projects.

Meta’s latest restructuring comes as Reality Labs continues to face heavy financial pressure. Reports suggest the division employs around 15,000 people, and affected employees were informed of the layoffs through an internal message from Meta’s Chief Technology Officer, Andrew Bosworth.

Along with reducing staff, Meta is also reportedly rethinking its spending on virtual reality to make the business more sustainable. The company is shifting more attention towards AI-based products, including smart glasses and mobile-focused technology. Meta is also said to be in talks with eyewear company EssilorLuxottica to expand its AI-powered wearable devices.