Saturday, January 17, 2026

Meta to Close Horizon Workrooms VR App in 2026 as It Shifts Focus to AI and Faces Layoffs

Meta Platforms Inc. has announced the closure of Horizon Workrooms, its virtual reality workplace app, effective February 2026. This decision, amid a fresh round of layoffs in its Reality Labs division, signals a strategic shift from metaverse projects to AI investments. The application, launched in 2021, aimed to facilitate remote collaboration but struggled with adoption due to technical issues and competition from established tools like Zoom. The pivot reflects CEO Mark Zuckerberg’s focus on AI, highlighted by significant financial losses exceeding $40 billion since 2019 in Reality Labs. Layoffs affecting over 1,000 employees underscore the financial strain and the challenges faced by the VR ecosystem. As Meta redirects resources towards AI-driven initiatives, the future of VR and workplace collaboration remains uncertain. Industry observers are concerned this reallocation may stifle innovation within the VR domain, signaling a critical shift in Meta’s long-term technological vision and positioning in the evolving tech landscape.

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