After shedding 1500 folks, dropping $88 billion; Meta CFO Susan Li tells analyst the place the Actuality Labs division will give attention to

Meta’s CFO Susan Li has confirmed that the corporate continues to be “constructing future headsets” and maintains “optimism in the way forward for VR” — however not earlier than making it clear that wearables, not digital actuality, will drive Actuality Labs spending going ahead.Li made the feedback throughout Meta’s This autumn 2025 earnings name, responding to a Deutsche Financial institution analyst who requested whether or not Actuality Labs would chop its focus to wearables. Her reply: not fully, however largely sure.“We’re meaningfully decreasing our funding in VR and Horizon this yr, however we’re rising our funding in wearables,” Li stated.

Meta’s Actuality Labs misplaced $19.2 billion in 2025 alone, taking whole losses previous $83 billion since 2020

The numbers paint a stark image. Actuality Labs pulled in simply $2.2 billion in income for fiscal 2025 whereas burning by means of $19.2 billion in working prices. That is an 8.3% bounce in losses in comparison with the earlier yr. Since its inception in 2020, the division has now bled over $83 billion — with simply $11.8 billion in whole income to indicate for it.Earlier this month, Meta lower roughly 1,500 jobs from the division — about 10% of its workers. Three VR sport studios have been shut down, the Batman: Arkham Shadow sequel bought cancelled, and Horizon Workrooms was retired.

Ray-Ban Meta sensible glasses tripled in gross sales whereas Quest headset numbers dipped

The distinction between VR and wearables could not be sharper. Quest headset gross sales fell in 2025, whereas Ray-Ban Meta sensible glasses gross sales greater than tripled. Meta even needed to delay the worldwide rollout of its Ray-Ban Show glasses as a result of US demand outstripped provide.CEO Mark Zuckerberg informed buyers he sees AI glasses as “the principle manner that we combine superintelligence into our day-to-day lives.” Fairly a shift from the metaverse pitch that bought Fb renamed in 2021.

Meta expects Actuality Labs losses to peak in 2026, with reductions beginning in 2027

Li informed buyers that 2026 losses must be roughly flat in comparison with 2025, and the corporate expects them to begin declining in 2027. Zuckerberg framed it as VR changing into “a worthwhile ecosystem over the approaching years.”As for these future headsets Li talked about — leaked memos from December recommend Meta is engaged on each an ultralight tethered headset and a conventional Quest 4 centered on gaming. The latter reportedly will not arrive earlier than late 2027 and can carry the next, unsubsidized worth.The metaverse dream is not lifeless. It is simply on a really tight price range now.