They said they would give further updates, so will see what they say. But, I would be willing to bet all my money, that the reasons they reduced their workforce is the same reason that most of the other layoffs and closures happened, because they were unable to secure funding for the projects they were working on.
And I think you are 100% right there.
The whole game industry has contracted, plus Meta have really scaled back on funding games in general, so there's fewer funds coming from the main VR platform owner.
Also the Meta store has got increasingly worse over the last couple of years, with really poor discoverability.