Meta faces “zombie era” scrutiny after April 29 earnings show first user dip and Reality Labs posts $19.1 billion 2025 loss
Meta’s April 2025 earnings marked the first reported decline in user numbers, adding to concerns over large-scale layoffs, mandatory AI training work for engineers, and a hit to internal engineering culture. Reality Labs continued to post steep losses, reaching $19.1 billion in 2025, as questions mounted over the company’s execution of its AI strategy. Reporting cited by outlets including The New York Times and Wired described Meta as entering a “zombie era,” prompting broader doubts about its long-term competitiveness and profit model. The developments have also weighed on expectations for Meta’s fundamentals as a major S&P 500 constituent.
