Meta Platforms, the company formerly known as Facebook, made a huge splash when CEO Mark Zuckerberg renamed it and declared the “metaverse” as its future. But it looks like even grand visions need a reality check sometimes. Recent reports suggest a significant shift in Meta’s strategy.
Sources indicate that Zuckerberg is planning substantial cuts to the metaverse division, with a potential 30% budget reduction by 2026, impacting projects like Horizon Worlds and the Quest VR headsets. This could even lead to layoffs as early as next month.
Why the sudden change of heart? While Zuckerberg has historically asked for company-wide budget trims, the metaverse sector seems to be facing deeper cuts. One major reason cited is that Meta hasn’t encountered the level of competition in the metaverse space it initially anticipated. Essentially, without a heated race, the urgency (and investment) has lessened.
A big chunk of these proposed cuts will likely hit Meta’s VR group, which currently accounts for most of the company’s metaverse-related spending. Despite billions poured into its Reality Labs (the home of AR and VR tech), the division has been a consistent money-loser.
However, it’s not all doom and gloom for new tech. A Meta representative clarified that the company isn’t abandoning innovation. Instead, they’re “shifting some of its investment from the metaverse toward AI glasses and wearables, given the momentum there.” This suggests a strategic pivot rather than a complete retreat from future tech. So, while the grand metaverse dream might be getting a budget trim, Meta is still looking ahead, just perhaps through a different lens—or a pair of AI-powered glasses.
Source: https://www.mobileworldlive.com/meta/meta-ceo-could-pull-back-on-metaverse-resources/
