Meta Closes Twisted Pixel and Sanzaru Games Studios Following 10% Layoff in Reality Labs Division

January 13, 2026 Update:

Recent information from Bloomberg indicates that Meta is initiating significant workforce reductions, aiming to eliminate over 1, 000 positions as part of a broader 10% cut within its Reality Labs division. This shift represents a notable strategic pivot away from the company’s previous Metaverse-centric initiatives.

As part of these layoffs, notable studios such as Armature Studio, along with Twisted Pixel and Sanzaru, are being closed down. Armature Studio, established in 2008 and renowned for its work on the Oculus Quest 2 version of Resident Evil 4, also had a successful history of developing game ports for systems like the PlayStation Vita, including popular titles such as the Metal Gear Solid HD Collection and Injustice: Gods Among Us.

Original Announcement:

A report by the New York Times disclosed on January 12 that Meta would be implementing a significant workforce reduction, laying off 10% of employees within its Reality Labs division. This segment of the company is responsible for several innovative projects, including developments in the Metaverse and the operational tasks of Oculus Studios, which includes teams behind projects like Deadpool VR and Asgard’s Wrath 2.

As the affected developers began to announce their job losses, initial reports confirmed the full closure of both Twisted Pixel Games and Sanzaru Games, resulting in job eliminations for every member of the teams involved. Andy Gentile, a designer from Twisted Pixel, shared the heartbreaking news on his X (formerly Twitter) account, stating that not only he but the entire studio and Sanzaru Games had been shut down.

I’ve just been laid off. It appears the entire @twisted_pixel games studio has been shut down.@SanzaruGames too

— andyTHPS 💙 (@andyTHPS) January 13, 2026

While the exact number of impacted employees remains uncertain, several developers have reported their layoffs, further validating the closure of these studios. Ray West, a senior level designer at Sanzaru, expressed deep regret in a LinkedIn post: “Welp. As many will hear soon, several Meta game studios were closed today, including Sanzaru. It was an amazing team of powerhouse talent, and I’m really glad to have gotten to know everyone there.”

Twisted Pixel is known for creating engaging titles like Deadpool VR, ‘Splosion Man, and Path of the Warrior, while Sanzaru earned acclaim for its Asgard’s Wrath series, particularly for its second installment, which is considered one of the finest VR games in recent memory. Sanzaru also made a significant mark on the PlayStation community, having ported the original Sly Cooper trilogy to the PS3 and PS Vita and developed Sly Cooper: Thieves in Time.

Both studios were founded in 2006, marking an unfortunate closure just as they were on the cusp of celebrating their 20th anniversaries—a milestone that many game studios today struggle to reach. The announced layoffs at Meta signify a troubling continuation of the trend in the gaming industry towards mass reductions, echoing a reality of job instability that has increasingly characterized this sector in recent years.

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