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.
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Meta’s Zuckerberg plans deep cuts for Metaverse efforts
Meta Platforms Inc.’s Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook Inc.
Meta’s Zuckerberg Plans Deep Cuts for Metaverse Efforts
Meta Platforms Inc.’s Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook Inc.
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