"Earlier this month, Meta laid off 10% of the staff for Reality Labs, its virtual reality unit, reportedly cutting as many as 1,000 employees. Now, in a development that seems directly related, the company has revealed that the unit lost many billions of dollars last year. On Wednesday, Meta's earnings report showed that its embattled virtual reality business had lost some $19.1 billion in 2025, which is slightly more than it lost in 2024 (that year, the losses hovered around $17.7 billion). In its fourth quarter, the unit posted a loss of $6.2 billion, the report shows."
""For Reality Labs, we are directing most of our investment towards glasses and wearables going forward, while focusing on making Horizon a massive success on Mobile and making VR a profitable ecosystem over the coming years," Zuckerberg said, during the call. However, the CEO noted that losses were expected to continue. "I expect Reality Labs losses this year to be similar to last year," Zuckerberg said, while noting that this year would "likely be the peak, as we start to gradually reduce our losses going forward.""
Reality Labs recorded a $19.1 billion loss in 2025, up from about $17.7 billion in 2024, with a fourth-quarter loss of $6.2 billion. The unit generated $955 million in Q4 and roughly $2.2 billion in revenue for 2025. Meta cut about 10% of Reality Labs staff, reportedly up to 1,000 employees, amid the mounting losses. Leadership plans to prioritize investment in glasses and wearables, push Horizon on mobile, and aim to make VR a profitable ecosystem over time. Company guidance expects losses in 2026 to be similar to 2025, with a projected peak this year before gradual reductions.
Read at TechCrunch
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