Meta Shuts Down VR Workplace App Amid Reality Labs Cuts

Meta is shutting down its dedicated workplace virtual reality application, Horizon Workrooms, as the tech giant continues to scale back its metaverse ambitions. The standalone app, designed for remote team collaboration, will become inaccessible starting February 16.

The decision comes amid a broader restructuring effort within the company's Reality Labs division. This move represents a significant shift in strategy for Meta, which once positioned the metaverse as the future of work and social interaction. The closure highlights the evolving priorities of the company as it navigates a challenging economic landscape.

Meta officially announced the discontinuation of Horizon Workrooms in a blog post released on a Thursday. The application, which launched in 2021, was created to allow remote teams to meet and collaborate in a shared virtual environment using VR headsets.

According to the announcement, users will lose access to the platform entirely on February 16. Following the shutdown, all data associated with user accounts and meetings will be permanently deleted from Meta's servers.

The company stated that Workrooms served as a showcase for how Meta Horizon could facilitate connection and productivity. However, the platform has since evolved. Meta noted that Horizon has developed into a broader social platform supporting a wide range of productivity applications and tools, making the standalone Workrooms app redundant.

In addition to the app closure, Meta is ending sales of Horizon managed services on February 20. Despite the sales halt, the company confirmed that existing customers will continue to receive technical support until the start of 2030.

The app's discontinuation is directly linked to significant workforce reductions within Reality Labs, the division responsible for Meta's VR headsets and the Horizon Worlds social network. Reports indicate that the division is preparing to lay off a substantial portion of its staff.

Reality Labs employs approximately 15,000 people. Projections suggest that 10% to 15% of this workforce will be affected by the cuts. These layoffs are part of a larger pattern of cost-cutting measures as Meta re-evaluates its spending.

The company has been aggressively pivoting its attention and financial resources toward Artificial Intelligence. This strategic shift has placed the metaverse division under increased scrutiny due to its financial performance. The metaverse has proven to be a costly venture for Meta, resulting in more than $70 billion in losses since the year 2020.

2025 was the most critical year of his tenure.

In a memo circulated last year, Meta's Chief Technology Officer—who oversees the company's metaverse initiatives—described the previous year as a pivotal moment for his leadership, underscoring the high stakes involved in the division's performance.

The closure of Workrooms and the accompanying layoffs underscore the financial pressure facing Meta's immersive technology division. The Reality Labs unit has been a primary driver of the company's massive spending, yet it has struggled to generate proportional revenue.

Since 2020, the metaverse initiative has burned through tens of billions of dollars. This sustained financial drain has prompted repeated rounds of budget cuts and restructuring. Investors and analysts have closely monitored these expenditures, questioning the long-term viability of the metaverse strategy in its current form.

As Meta looks to the future, the focus has clearly shifted. The company is redirecting its capital and engineering talent toward generative AI technologies, which have seen rapid adoption and market demand. This pivot suggests that the era of aggressive investment in the metaverse may be drawing to a close, replaced by a more measured approach focused on profitability and core technological advancements.

The sunsetting of Horizon Workrooms marks the end of a specific chapter in Meta's history, but the broader Horizon ecosystem remains active. The platform continues to serve as a social space, though its utility as a dedicated enterprise tool has been deprecated.

For the employees at Reality Labs, the coming months represent a period of uncertainty as the layoffs take effect. The division's future will likely involve a leaner operation with a tighter focus on integrating AI capabilities into VR and AR hardware.

Ultimately, Meta's strategy is undergoing a fundamental transformation. While the vision of a fully realized metaverse persists, the company's immediate priorities are firmly rooted in artificial intelligence and sustainable financial growth. The shutdown of Workrooms is a tangible signal of this new direction.