Meta, formerly known as Facebook, continues to face substantial financial losses in its virtual reality (VR) business unit, as reported by TechCrunch. The VR division, Reality Labs, incurred a $19.1 billion loss in 2025, following a trend of significant financial setbacks.
In response to these challenges, Meta recently laid off around 1,000 employees, constituting 10% of Reality Labs’ workforce. Despite efforts to reposition its focus on wearables and AI technologies, the company’s VR segment remains a costly endeavor.
Meta’s CEO, Mark Zuckerberg, expressed a positive outlook for the future of VR within the company during the company’s earnings call. Zuckerberg emphasized a strategic shift towards investing in glasses and wearables, alongside initiatives to enhance the mobile experience and establish VR as a profitable ecosystem in the long term.
However, the financial outlook for 2026 appears bleak, with projected losses expected to mirror those of the previous year. Zuckerberg anticipates ongoing challenges in turning around the VR business, even as Meta transitions towards AI-driven ventures.
Meta’s pivot towards the ‘metaverse’ in 2021 has yet to yield significant returns, with the VR division facing continued criticism and financial woes. As the company navigates a landscape of evolving technologies and shifting priorities, the future of its VR endeavors remains uncertain.
Source: TechCrunch