Facebook’s decade-long streak of nonstop revenue growth has come to end. The social network reported its first-ever yearly decline in revenue for the second quarter, announcing a 1% drop to $28.8 billion, and predicted that growth in the third quarter could fall even more. The overall profit for its parent company, Meta, fell 36% to $6.7 billion. While the Reality Labs division responsible for building Mark Zuckerberg’s metaverse dreams lost $2.8 billion in the quarter.

Revenue for Meta came in at $28.82 billion vs. $28.94 billion expected while its EPS was $2.46 per share vs. $2.59 per share expected. Meta shares have lost about half their value since the beginning of the year, underscoring investor concern about the health of the company’s core online advertising business. Its second-quarter results also showed us that Mark Zuckerberg’s vision of the metaverse is still very expensive. And its losses in its VR division hit $2.8 billion in the second quarter, even as its virtual reality hardware and software sales continue to grow.

Zuckerberg has gone on the record saying there are “probably a bunch of people at the company who shouldn’t be here” in a signal that the losses in VR and a slowdown in the broader business are starting to hurt. The company has instituted hiring freezes amid lower ad revenues because of Apple’s crackdown on privacy. “This is a period that demands more intensity and I expect us to get more done with fewer resources,” Zuckerberg said.