Meta's Ambitious Metaverse Plans May Take a Hit as Spending Cuts Loom.
In a move that could significantly alter the company's strategy, Meta is reportedly planning drastic budget cuts for its metaverse division. The cuts, which could amount to 30 percent or more, would likely have far-reaching implications for the virtual worlds product Meta Horizon Worlds and the Quest VR headset.
According to sources close to the matter, these reductions were discussed at a series of meetings with CEO Mark Zuckerberg in Hawaii, where the company's annual budget planning for 2026 was being finalized. Insiders point out that this is part of an effort to make deeper-than-usual cuts to the metaverse team, due to the technology's relatively slow adoption by consumers.
The entire concept of the metaverse has been met with lukewarm reception from investors and users alike. While Meta still firmly believes in its long-term potential, it appears that even executives like Zuckerberg are starting to reassess expectations.
For context, Meta Reality Labs – the division behind the metaverse efforts – has lost a staggering $70 billion since 2021. The company's lack of investment talks in public and in earnings calls is another indicator that things might not be going as planned for this ambitious project.
Given these developments, it is likely that Meta will shift its focus towards other areas, such as the development of large AI models and chatbots, as well as hardware products tied to AI experiences.
In a move that could significantly alter the company's strategy, Meta is reportedly planning drastic budget cuts for its metaverse division. The cuts, which could amount to 30 percent or more, would likely have far-reaching implications for the virtual worlds product Meta Horizon Worlds and the Quest VR headset.
According to sources close to the matter, these reductions were discussed at a series of meetings with CEO Mark Zuckerberg in Hawaii, where the company's annual budget planning for 2026 was being finalized. Insiders point out that this is part of an effort to make deeper-than-usual cuts to the metaverse team, due to the technology's relatively slow adoption by consumers.
The entire concept of the metaverse has been met with lukewarm reception from investors and users alike. While Meta still firmly believes in its long-term potential, it appears that even executives like Zuckerberg are starting to reassess expectations.
For context, Meta Reality Labs – the division behind the metaverse efforts – has lost a staggering $70 billion since 2021. The company's lack of investment talks in public and in earnings calls is another indicator that things might not be going as planned for this ambitious project.
Given these developments, it is likely that Meta will shift its focus towards other areas, such as the development of large AI models and chatbots, as well as hardware products tied to AI experiences.
. I mean, I get why they're making cuts, but 30% or more? That's a big chunk for the metaverse team. They've been talking about this 'metaverse' thing for years now and it seems like no one really knows how to make it stick.
. I mean, sure, adoption has been slow, but what's wrong with taking things one step at a time? Maybe they should've started by building something smaller and more manageable instead of going all-in on the metaverse.
. But it seems like their expectations might be a bit unrealistic. Maybe it's time for them to scale back and focus on other areas that are actually gaining traction – AI models and hardware products come to mind.
. Back in my day, we used to think VR was just for gamers and tech geeks, but now it seems like even the big players are having second thoughts 
. And $70 billion losses since 2021? Talk about a financial rollercoaster 
.
. I mean, who needs the metaverse when you've got AI and chatbots on the horizon? 
Those are things that people will actually use and care about. But at the same time, I get why they want to shift focus - it's all just a bunch of tech speak anyway 
.
.
. And think about it, the tech is still super new and people are just getting used to wearing VR headsets, let alone exploring virtual worlds... 
. Not to mention all the other sick apps they could develop 
slow adoption, yeah right... it's like they're tryin to keep the same old money flowin', but nobody's buyin' what they're sellin' 
mark my words, this is just a smokescreen for somethin' bigger... maybe even a distraction from AI research? 
got my eye on this one, stay tuned 
30% or more cuts sounds insane, what's gonna happen to Meta Horizon Worlds & Quest VR? 
. 70 billion lost in 4 years is crazy 
. but 30% cuts? that sounds like a lot of jobs getting axed 
. and what's the point of investing all this if you're not gonna see some major returns? i guess meta's just trying to pivot and focus on other stuff, but still... it's hard not to feel kinda meh about it 
.
. We can't keep throwing billions at something that's not taking off. Maybe they need to take a step back and focus on what really works? AI models and chatbots are where the future's at, imo 
. It's all about leveraging tech for better user experiences 
so yeah, it makes sense they'd cut costs, its not like they can just keep throwing cash at a project thats not getting the traction they hoped for 
it's been a wild ride but i think they need 2 scale back expectations already 
it's still early days, n all. I'm kinda excited 2 see what they do w/ that $70 billion 
. Mark Zuckerberg must be super nervous about the whole thing, meeting in Hawaii and all... 
And the fact that they're cutting budget by 30% is pretty telling - I guess even Mark Zuckerberg doesn't think it's going to pay off anytime soon 
. It makes sense for them to pivot to other areas like AI and hardware, those are definitely more in demand right now 
what's the point of havin a metaverse if u can barely afford to keep it goin? 
meta's net income in 2022 was $32 BILLION 
. I mean, have you seen how slow adoption rates are for Meta Horizon Worlds? It's like they're trying to push a dream that nobody wants to wake up from 
. Mark Zuckerberg needs to face facts, dude. The metaverse isn't happening anytime soon. Maybe it's time for him to focus on something that actually has a shot in the dark... like those large AI models and chatbots 
. I mean, $70 billion lost since 2021? That's some serious red ink 
. Maybe Mark Zuckerberg's trying to cut his losses and pivot to something else? We'll see how this plays out...