Virtual Reality Industry Impacted as Meta’s Layoffs Hit Two Major Studios

One employee at Ready at Dawn, developer of Lone Echo, claims that a third of the firm, including the studio head, has been let off as a result of the recent round of employment layoffs at Meta Quest and VR owner Meta.

The Washington Post first reported that Meta might lay off as many as 4,000 workers today as part of the company’s declared objective of eliminating another 10,000 positions in 2023, after the 11,000 positions eliminated last year.

Employees at both Ready at Dawn and another recent Meta purchase, Downpour Interactive, have alleged they have been affected by the company’s purported targeting of “highly skilled staff,” such as engineers and other technical professionals, in its newest wave of layoffs.

The latest layoffs infuriated several of the company’s VR game development staff members, who vented their frustration on social media.

In 2020, Meta purchased Ready at Dawn, a California-based company. Before and after that purchase, it produced a number of VR games, including Lone Echo II and Echo VR, the latter of which will shut down in August. The layoff will hinder the development of VR-based games and will surely impact the ongoing projects.

The latest round of layoffs is part of Meta’s ongoing effort to reorganize its departments and executive ranks. It is predicted that the company’s Facebook, WhatsApp, and Instagram departments, in addition to its game developers and Reality Labs, would be affected by the layoffs.


Muhammad Zuhair

Passionate about technology and gaming content, Zuhair focuses on analyzing information and then presenting it to the audience.