Meta Reality Labs chief calls urgent "all-hands" meeting amid $4.4B losses 🚨 Staff told to pause work. 👀
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Alarm bells are reportedly ringing at Meta’s Reality Labs
division. Andrew Bosworth, the company's Chief Technology Officer and the head
of the division, has summoned the team for an "all-hands" meeting
next week that is being described internally as the most critical gathering of
the year.
Scheduled for January 14, this isn't just another routine
video check-in. According to a report from Business Insider, Bosworth
has stressed the importance of attending this meeting in person—a move that is
raising eyebrows across the tech giant.
The "Pause Work" Order
In an era where remote and hybrid work is the norm at Meta,
demanding an in-person presence carries significant weight. The urgency is so
high that some managers have reportedly instructed staff to pause all
current work to ensure they can attend.
The agenda for the meeting remains tightly under wraps, but
the timing and tone suggest a potential pivot or a major strategic shake-up.
When leadership tells thousands of engineers and developers to drop everything
and show up physically, speculation inevitably turns toward restructuring or a
radical change in direction.
The Financial Reality Check
The urgency likely stems from the financial gravity of the
situation. Reality Labs, the division responsible for the Metaverse, Quest
headsets, and augmented reality (AR) research, has been bleeding cash.
In the third quarter of 2025 alone, the division posted an
operating loss of $4.4 billion (roughly Rs. 37,000 crore). That is a
staggering amount for a single quarter, even for a company with the deep
pockets of Meta. While the division does generate revenue, the sheer cost of
developing cutting-edge AR and VR technologies is outpacing income.
A Pessimistic Forecast for the Future
The meeting also comes on the heels of a sobering outlook
for the next quarter. During the earnings call for Q3, Susan Li, Meta’s Chief
Financial Officer, admitted that the outlook for Reality Labs is bleak.
Li stated that Q4 revenue is expected to be lower than the
previous year. The primary reason? A lack of new hardware. The company is
currently "lapping the introduction of Quest 3S," which launched in
Q4 of the prior year. Without a new headset in the market to drive sales in the
current cycle, growth has stalled.
What to Expect
While Bosworth hasn't tipped his hand regarding the content
of the meeting, the message is clear: the status quo isn't sustainable. Whether
this means doubling down on specific unannounced products, scaling back on
experimental projects, or a deeper integration with Meta's AI division, the
team at Reality Labs is likely bracing for a major announcement next Tuesday.
#Meta #RealityLabs #AndrewBosworth #TechNews #Metaverse
#BusinessNews #VR #AR #MarkZuckerberg
