Several developers from Twisted Pixel, the studio behind ‘Splosion Man and Asgard Wrath’s Sanzaru Games have announced on social media that they have been laid off and their respective studios have been shut down. The New York Times reported that Meta was planning to cut around 10% of the employees in its Reality Labs division, which works on products including the metaverse.

Meta has reportedly closed several studios, including Twisted Pixel Games (‘Splosion Man, Deadpool VR) and Sanzaru Games (Asgard’s Wrath 1 and 2).https://t.co/Ido0UNCAKn pic.twitter.com/HT7qkcXRs1

— VGC (@VGC_News) January 13, 2026

Andy Gentile, a Designer at Twisted Pixel Games, posted that he lost his job as part of the closures. “I’ve just been laid off,” he wrote. “It appears the entire Twisted Pixel games studio has been shut down. Sanzaru Games, too.”

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

Ray West, a Senior Level Designer at Sanzaru Games, corroborated the news by sharing that he lost his job and is open for work on LinkedIn. “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. But, onward – I am open to work.”

Twisted Pixel Games was acquired by Meta in November 2021. Last year, they released Marvel’s Deadpool VR on Meta Quest 3. The studio was founded back in 2006 and was responsible for several critically acclaimed Xbox Live Arcade titles The Maw, ‘Spolision Man, Ms ‘Spolsion Man, and Comic Jumper.

Sanzaru Games was also founded in 2006. Prior to being acquired by Facebook, the studio worked on ports and remasters of Sony titles such as Secret Agent Clank, The Sly Cooper Collection, and God of War Collection. In 2019, they developed and released Asgard’s Wrath for the original Oculus Rift. the sequel, Asgard Wrath’s 2, was included as a free launch game on Meta Quest 3.

Meta’s Chief Technology Officer Andrew Bosworth, the head of Reality Labs, called for a meeting on Wednesday, urging staff to attend in person and calling it the “most important” meeting of the year, The New York Times reports.

Meta is reportedly planning to reduce its focus on VR devices and the meta and move towards other divisions such as AI research and its wearables division (smart glasses, wristband computing devices, etc…).