"In October 2021, Facebook CEO Mark Zuckerberg revealed that his social media empire was officially rebranding itself as "Meta" as part of a sweeping company-wide doubling down on virtual reality tech. The head-scratching pivot has been nothing short of a disaster ever since, from blocky "Horizon Worlds" online environments filled with screeching children to never-ending rounds of layoffs and exorbitant losses."
"Now, as Bloomberg reports, the company's executives are eying gigantic budget cuts, as high as 30 percent, for the teams responsible for its Meta Horizon Worlds product and Quest VR headset - another nail in the coffin for Zuckerberg's obsession that has been a major thorn in the sides of investors for years now. Layoffs could start as soon as January, but final decisions have yet to be made."
"In fact, following Bloomberg 's reporting, Meta's stock jumped over four percent on Thursday, underscoring the degree to which shareholders have grown fed up with the company trying to make the metaverse happen. "Smart move, just late," Huber Research Partners analyst Craig Huber told Reuters. "This seems a major shift to align costs with a revenue outlook that surely is not as prosperous as management thought years ago.""
Mark Zuckerberg rebranded Facebook as Meta in October 2021 and pushed heavily into virtual reality. The metaverse effort has produced underwhelming products like Horizon Worlds, repeated layoffs, and more than $70 billion in losses since early 2021. Executives are considering deep budget cuts—up to 30 percent—for Horizon Worlds and Quest VR teams, with layoffs possibly beginning in January. Meta's stock rose after the news, reflecting investor impatience. The company is shifting focus toward artificial intelligence and plans roughly $72 billion in AI spending this year while implementing broader cost reductions around ten percent.
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