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business1d ago
Meta’s Reality Labs lost over $4 billion in first quarter
- Reality Labs posted a $4.03 billion operating loss in Q1 2026 while generating $402 million in revenue.
- Meta notes Reality Labs has accumulated over $80 billion in total operating losses since late 2020.
- Meta is shifting resources toward artificial intelligence, while cutting staff elsewhere.
- Meta announced broader layoffs totaling about 8,000 roles, with 6,000 open positions ending.
- Reality Labs faced additional job cuts in January and March as part of broader restructuring.
- Meta’s broader AI investments aim to catch up with OpenAI, Anthropic and Google.
- Reality Labs’ focus includes VR/AR and wearable devices like the Ray-Ban Meta smart glasses.
- Meta rebranded from Facebook to Meta in 2021 to emphasize virtual world ambitions.
- Analysts’ expectations were for larger losses than Meta reported in Q1.
- Meta aims to balance AI infrastructure growth with cost-cutting and workforce reductions.
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