"Shares of Meta Platforms, Inc. (META) rose on Thursday after Bloomberg reported the technology company was planning to cut spending across its division by 10%, with as much as 30% cuts to its virtual reality group, which includes the so-called metaverse. This could potentially include layoffs, which could come as early as January, and are part of the company's 2026 budget, according to the article."
"The news is significant because the metaverse is widely considered a pet project of Meta CEO Mark Zuckerberg, who had previously identified it as the future of Meta, even changing Facebook's name to Meta for that very reason. Zuckerberg has also reportedly spent billions and employed thousands to make this dream come to fruition, according to The New York Times."
Meta plans to cut division spending by about 10% overall and as much as 30% in its virtual reality group, potentially including layoffs as early as January and incorporated into the 2026 budget. Shares rose on the news, climbing about 5.7% in early trading before settling up roughly 4% by afternoon. Wall Street views the VR division as a drain on resources, and internet watchers express concerns about VR platforms' ability to safeguard children. The metaverse has not gained broad consumer adoption, and Horizon Worlds underperformed expectations. Meta reported stronger-than-expected third-quarter 2025 revenue and EPS but recorded a one-time $15.93 billion tax charge and plans up to $72 billion in AI spending for 2025.
Read at Fast Company
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