Mark Zuckerberg has signaled that Reality Labs' multibillion-dollar losses may soon come to an end. The company's recent layoffs and shift in focus towards AI glasses have given investors a glimmer of hope that the division is turning its fortunes around.
While progress won't happen overnight, the CEO expressed optimism about the future of Reality Labs. He stated that investments will now be directed towards glasses and wearables, while focusing on making Horizon a success on mobile and creating a profitable virtual reality ecosystem in the years to come.
Zuckerberg acknowledged that Reality Labs' losses for 2025 were staggering, at over $19 billion. However, he noted that these losses may peak this year and gradually decrease as the company implements its new strategy.
The company has taken significant steps towards pivoting away from its virtual reality focus, including cutting over 1,000 employees and shutting down three VR studios. Meta is also putting its plans for third-party Horizon OS headsets on hold.
Instead, the company is doubling down on its smart glasses and wearables business, which aligns with Zuckerberg's vision of creating AI "superintelligence". Sales of Meta's smart glasses have more than tripled in 2025, and the CEO hinted at even bigger plans for augmented reality (AR) glasses.
One notable aspect of Zuckerberg's comments was his absence of mention of the term "metaverse", which has long been associated with Reality Labs. This suggests that the company is finally moving away from its virtual reality-centric focus and embracing a more AI-driven approach.
While progress won't happen overnight, the CEO expressed optimism about the future of Reality Labs. He stated that investments will now be directed towards glasses and wearables, while focusing on making Horizon a success on mobile and creating a profitable virtual reality ecosystem in the years to come.
Zuckerberg acknowledged that Reality Labs' losses for 2025 were staggering, at over $19 billion. However, he noted that these losses may peak this year and gradually decrease as the company implements its new strategy.
The company has taken significant steps towards pivoting away from its virtual reality focus, including cutting over 1,000 employees and shutting down three VR studios. Meta is also putting its plans for third-party Horizon OS headsets on hold.
Instead, the company is doubling down on its smart glasses and wearables business, which aligns with Zuckerberg's vision of creating AI "superintelligence". Sales of Meta's smart glasses have more than tripled in 2025, and the CEO hinted at even bigger plans for augmented reality (AR) glasses.
One notable aspect of Zuckerberg's comments was his absence of mention of the term "metaverse", which has long been associated with Reality Labs. This suggests that the company is finally moving away from its virtual reality-centric focus and embracing a more AI-driven approach.