US EditionMeta CEO Zuckerberg planning cuts in Metaverse projects by up to 30%: Bloomberg
Meta’s Reality Labs, responsible for VR and AI glasses, faces up to 30% budget cuts due to $70 billion losses since 2020 and strategic shift to AI focus.
- On Thursday, Meta CEO Mark Zuckerberg reportedly weighed significant metaverse budget cuts, with executives considering reductions as high as 30%, Bloomberg said.
- Reality Labs, Meta's virtual‑reality division, reported a $4.4 billion loss in the most recent quarter and has recorded over $70 billion in cumulative losses since late 2020.
- Cuts would likely hit Reality Labs, which develops Quest headsets and Ray-Ban and Oakley AI smart glasses, with Bloomberg saying proposed reductions could include layoffs in 2026 budget planning.
- Meta Platforms shares popped about 4% higher on Thursday after the Bloomberg report, and Meta did not immediately respond to a request for comment.
- The potential cuts mark a notable reversal after Meta Platforms' October 2021 rebrand, as CEO Mark Zuckerberg has repositioned the company as an AI firm, shifting away from heavy metaverse spending.
111 Articles
111 Articles
Zuckerberg's metaverse dream is collapsing after billions in losses
Reality Labs encompasses several areas of Meta's VR/AR business, but Bloomberg writes that two of them will be hit hardest: Horizon Worlds and virtual reality. Zuckerberg is planning to slash Reality Labs' budget by 30%, with the cuts coming as early as January 2026.Read Entire Article
Zuck Chooses the Red Pill With 30% Cuts to Metaverse Budget
Reality bites for Meta’s virtual worlds. Executives at the tech giant are considering cutting up to 30% of the budget for its Reality Labs unit, which is building Mark Zuckerberg’s metaverse, Bloomberg reported Thursday. The Real World: Menlo Park You might recall that in 2021, Zuckerberg deemed the metaverse so vital to the future that he renamed the entire company after it. The former Facebook Inc. has since poured billions into developing vi…
Meta scales back metaverse spending following reports of cutting budget by up to 30%
Meta is dialing back its metaverse ambitions and redirecting resources toward AI-powered glasses and wearable technology, the company told FOX Business on Thursday.The shift follows reports that Meta could slash as much as 30% from its metaverse group, an area CEO Mark Zuckerberg has previously touted as the company’s future.While the tech giant did not confirm specific figures, the company said adjustments would take place within Reality Labs, …
Analysis by Allison Morrow, CNN: It appears Meta is finally ready to end the suffering of the metaverse. Shares of the company formerly known as Facebook jumped 7% Thursday morning following a Bloomberg report that CEO Mark Zuckerberg will cut the metaverse team's budget by as much as 30%. CNN has not confirmed the report, and Meta did not respond to a request for comment. The stock ended the day up 3.4%. It's not hard to see why Wall Street is …
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