Camouflaj, the virtual reality studio recognized for its work on Batman: Arkham Shadow, has been impacted by the latest round of layoffs at parent company Meta. A Meta spokesperson confirmed that while there have been job reductions at Camouflaj, the studio will remain operational.

This update comes as Meta has closed three other VR-focused studios this week, affecting approximately 10 percent of its VR/AR-focused Reality Labs division. The studios affected include Sanzaru Games (developer of Asgard’s Wrath), Twisted Pixel Games (Deadpool VR), and Armature Studio (Resident Evil 4 VR).

Meta recently announced a strategic shift, moving some investment from the Metaverse towards wearables. According to a company spokesperson, this transition is part of a broader effort to support the growth of wearables, with plans to reinvest savings from these changes into that area this year.

Reports indicate that Camouflaj now consists of only a small team focused on developing the user experience for upcoming hardware. Sources suggest that studio leadership has departed and that ongoing game projects have been discontinued. Additionally, it was reported that a sequel to Batman: Arkham Shadow was in development at Sanzaru Games before its closure.

Meta’s Reality Labs division has experienced significant staff turnover and financial losses in recent years. This week’s layoffs mark at least the third round of job cuts within Reality Labs, following previous reductions in June 2024 and April 2025. According to Meta’s July 2025 fiscal report, Reality Labs posted an operating loss of $4.5 billion for the second quarter ending June 30, 2025, continuing a trend seen in earlier financial statements.

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