Meta's Reality Labs posted a $4.2 billion operating loss in Q1 2025. According to CNBC, cumulative losses since 2020 now exceed $60 billion. From the report: Meta's Reality Labs unit is responsible for the company's Quest-branded virtual reality headsets and Ray-Ban Meta Smart Glasses. It's the key...
So that’s like $12B/year. At $200k/employee/year that would be 60,000 people!
How many people do they have working on VR, or is this creative accounting to bury operating expenses as capital investments?
Employees like this usually cost the company at least double their salary in support and benefits, so you’re probably talking about half that at most.
Along with that, there is probably a lot of R&D expenses as well.
Finally, Meta seems to be subsidizing the consumer hardware, so that’s probably hurting the bottom line even more.