"Meta's Reality Labs is going through a rough patch. During the company's earnings call for the third quarter of 2025, it was revealed that the division had incurred operating losses of $4.4 billion (roughly Rs. 37,000 crore). The losses were primarily due to the large expenses required to develop and manufacture the augmented reality (AR) and virtual reality (VR) devices under the Meta AI Glasses and Quest branding."
"Last month, a Bloomberg report had claimed that the Mark Zuckerberg-led company was planning to slash the division's budget for 2026 by as much as 30 percent, with the primary reason being a shift of focus to AI and its newly created Superintelligence Labs. The loss of revenue raised concerns that the company might be moving away from Metaverse, one of the most ambitious projects of the company. It is unclear how this impacts the development and launches of future AR and VR wearables."
Meta plans layoffs in Reality Labs affecting up to 10% of its 15,000 employees, approximately 1,500 roles. The division posted $4.4 billion in operating losses during Q3 2025 due to expenses for developing Meta AI Glasses and Quest devices. Leadership recently ordered an in-person all-hands meeting, described as the most important of the year. Bloomberg reported a proposed 30% budget cut for Reality Labs in 2026 tied to a shift toward AI and Superintelligence Labs. The cuts could disproportionately affect teams working on AR/VR device development and manufacturing. Future AR/VR launch timelines remain unclear.
Read at Gadgets 360
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