- Dan Reed, COO of Meta's Reality Labs, is stepping down after nearly 11 years.
- Reed's exit follows a major restructuring of Reality Labs, integrating it with Meta's core.
- Despite growth, Reality Labs has incurred over $60 billion in losses since 2020.
Dan Reed, the chief operating officer of Meta's Reality Labs division, is stepping down after nearly 11 years at the company.
Reed's departure marks another leadership change at a time when the division faces mounting internal and external pressure.
Reed announced his exit Wednesday in a LinkedIn post, reflecting on his time building what he described as a "fast-growing, multibillion-dollar consumer technology business" spanning AI wearables, augmented and mixed reality, and the metaverse.
"I see SO much exciting opportunity in this space, to which I eventually intend to return to lead and grow something cool and exciting," Reed wrote. "In the meantime, I'm very excited after this 20+ year run to take an extended break and spend quality time with my wife and two boys, reconnect with friends and family, and recharge."
Reed, a former NBA executive, first joined Meta in 2014 to lead the company's partnerships with sports teams and athletes.
Meta did not immediately respond to a request for comment.
Reed's departure follows Meta's major restructuring of Reality Labs earlier this year. Business Insider first reported in January that the company began integrating Reality Labs more closely with its core business. This shift reversed parts of Meta CEO Mark Zuckerberg's 2021 reorganization, which had positioned the group as a stand-alone, metaverse-focused division.
Under the new structure, sales, marketing, and analytics teams that once reported to Reed were redistributed under broader Meta leadership. Meta COO Javier Olivan now oversees the teams previously led by Reed, and other Reality Labs leaders have been aligned with top company executives, including chief marketing officer Alex Schultz and head of partnerships Justin Osofsky.
Meta's chief technology officer, Andrew Bosworth, credited Reed at the time for guiding the business group through a phase of rapid growth. An internal memo viewed by BI in January said that Reality Labs' sales rose over 40% year-over-year in 2024, and the division beat nearly all of its aggressive sales and user goals. Bosworth called Reed's leadership "a major part" of that success.
Despite those gains, Reality Labs remains a financial sinkhole for Meta. The division, which includes the Quest headsets, Horizon Worlds, and Meta's Ray-Ban smart glasses, has racked up more than $60 billion in losses since 2020.
Last month, Meta laid off staff across Reality Labs, including teams working on VR gaming and the Supernatural fitness app.
Internally, Bosworth has described 2025 as "the most critical" year for the division and said that Meta's ambitious metaverse bets could either validate years of investment or be remembered as a "legendary misadventure."
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