Meta employees packing VR gear amid Workrooms app shutdown and Reality Labs layoffs, spotlight on emerging AI smart glasses.
Meta employees packing VR gear amid Workrooms app shutdown and Reality Labs layoffs, spotlight on emerging AI smart glasses.
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Meta shuts down VR Workrooms app as part of cost cuts

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Meta is discontinuing its standalone Workrooms app for virtual reality meetings on February 16, 2026, amid broader efforts to reduce spending on the metaverse. The company is laying off more than 1,000 employees from its Reality Labs division and closing three VR studios. This shift prioritizes investments in AI hardware, such as smart glasses.

Meta's Reality Labs division, which has incurred losses exceeding $70 billion since 2021, is undergoing significant restructuring. The company announced the closure of the Workrooms app, a virtual reality space launched for team collaboration in immersive environments. According to Meta, its Horizon platform has advanced sufficiently to integrate a wide range of productivity apps and tools, prompting the decision to end Workrooms as a standalone product.

This move aligns with recent layoffs affecting over 1,000 employees and the shutdown of three VR studios. Meta is redirecting resources toward wearables, including its AI-powered Ray-Ban smart glasses, rather than metaverse initiatives. Additionally, the company plans to discontinue Horizon managed services—a subscription for managing Quest headsets—in February 2026.

Users of Workrooms will lose access to the app and their data starting February 16, 2026, but can download information beforehand. These changes reflect Meta's evolving focus away from expansive VR development toward more practical AI applications in hardware.

The podcast discussion on Engadget highlighted how these layoffs refocus the company on AI hardware, closing VR studios to streamline operations. TechRadar noted the shutdown of Horizons VR for businesses, underscoring the end of dedicated VR meeting rooms.

Cosa dice la gente

X discussions criticize Meta's shutdown of Horizon Workrooms and closure of three VR studios amid over 1,000 Reality Labs layoffs as a retreat from the metaverse. Users express disappointment over lost VR content and jobs, while some praise the pivot to AI hardware like smart glasses as a bullish long-term strategy. VR enthusiasts worry about the platform's future, and journalists report neutrally on the cost-cutting shift.

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Photorealistic image of a Meta Quest VR headset showing the Horizon Worlds shutdown announcement on June 15, with supporting news elements.
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Meta confirms June 15 shutdown of Horizon Worlds on Quest VR headsets

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Following its February announcement to shift Horizon Worlds to mobile, Meta has set June 15 as the end date for access on Quest VR headsets. The move continues the company's broader retreat from in-house VR content amid a pivot toward AI, AR glasses, and third-party developers.

Meta has announced that its Horizon Worlds social and gaming service will no longer be tied to its Quest VR headsets, focusing instead almost exclusively on mobile platforms. The company plans to continue producing VR hardware while emphasizing third-party developers. This move follows significant financial losses and layoffs in its Reality Labs division.

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Meta has shuttered three VR studios and laid off over 1,000 employees from its Reality Labs division as part of a shift away from metaverse investments toward AI-powered wearables. The closures include Armature, Sanzaru, and Twisted Pixel, with the popular Supernatural app ceasing new content updates. Company leaders emphasize a continued but leaner focus on VR through third-party support.

Meta is developing facial recognition technology for its smart glasses, potentially launching as soon as this year, according to a New York Times report. The feature, codenamed Name Tag, aims to help users identify people they know through AI. However, privacy concerns have delayed its rollout, with the company citing a distracted political landscape as an opportunity for introduction.

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The smart glasses market experienced a 139% year-over-year growth in the second half of 2025, driven largely by Meta's AI-enabled products. Meta captured 82% of shipments, with AI glasses making up 88% of the total. This surge highlights the rising popularity of advanced eyewear, though prices remain a barrier.

Meta, the parent company of the three platforms, has announced plans to trial premium subscription services that may charge users. This could reshape social media interactions. Free access will remain, with added features for subscribers.

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Australian software firm Atlassian announced layoffs of about 1,600 employees, or 10% of its workforce, to invest in artificial intelligence and enterprise sales. The restructuring aims to rebalance resources for the AI era in teamwork. Company shares rose nearly 2% in extended trading after the news.

 

 

 

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