Core Insights - Meta has laid off 10% of its Reality Labs staff, approximately 1,000 employees, amid significant financial losses in its virtual reality unit [1] - The Reality Labs unit reported a loss of $19.1 billion in 2025, slightly higher than the $17.7 billion loss in 2024, with a fourth-quarter loss of $6.2 billion [2] - CEO Mark Zuckerberg expressed optimism for the VR team but indicated that losses in 2026 are expected to remain similar to those in 2025 [3] Financial Performance - Reality Labs generated $955 million in sales during Q4 and approximately $2.2 billion throughout 2025, against substantial losses [2] - The company anticipates that losses for Reality Labs will peak in the current year, with a gradual reduction expected in the future [4] Strategic Direction - Meta is shifting its investment focus towards glasses and wearables while aiming to make Horizon a success on mobile platforms [4] - The company plans to close several VR studios and retire its standalone Workrooms app, indicating a declining interest in virtual reality [5]