"Executives are considering potential budget cuts as high as 30% for the metaverse group next year, which includes the virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit, according to people familiar with the talks, who asked not to be named while discussing private company plans. Cuts that high would most likely include layoffs as early as January, according to the people, though a final decision has not yet been made."
"The proposed metaverse cuts are part of the company's annual budget planning for 2026, which included a series of meetings at Zuckerberg's compound in Hawaii last month, the people said. Zuckerberg has asked Meta executives to look for 10% cuts across the board, which has been the standard request during similar budget cycles the past few years, they added."
"The entire metaverse effort has drawn scrutiny from investors, who have seen it as a drain on resources, as well as from watchdogs, who have alleged that children's privacy and safety have been compromised in the virtual worlds. Shares of Meta jumped as much as 5.7% after markets opened in New York, their biggest intraday gain since July 31."
Meta is considering up to 30% budget cuts to its metaverse group next year, which could include layoffs as early as January. The affected units include Meta Horizon Worlds and the Quest VR division. The cuts are part of annual 2026 budget planning and follow meetings at Zuckerberg's Hawaii compound. Zuckerberg requested 10% cuts across the company, but the metaverse group was asked to cut deeper due to weaker-than-expected industry competition. The virtual reality group would absorb the majority of reductions. Investors and watchdogs have criticized the effort, citing resource drain and children's privacy concerns; shares rose about 5.7%.
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