Earlier this month, Meta laid off 10% of the staff for Reality Labs, its virtual reality unit, reportedly cutting as many as 1,000 employees. Now, in a development that seems directly related, the company has revealed that the unit lost many billions of dollars last year. Those losses stood against what the unit generated in sales: $955 million in Q4 and some $2.2 billion throughout 2025. As the VR business continues to lose money and Meta continues an aggressive pivot away from VR and toward AI, it’s unclear what exactly will turn the ailing business around. Last week, CNBC reported that, in addition to the layoffs, Meta had plans to shutter a number of its VR studios — another sign that the company’s interest in virtual reality is waning.