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What Happened to Meta Metaverse: Meta is preparing to reduce spending on its metaverse initiative by up to 30%, according to a Thursday report from Bloomberg News.
The outlet cited sources with direct knowledge of the internal discussions.
The company’s stock climbed nearly 4% in morning trading after news of the potential cuts emerged.
CEO Mark Zuckerberg has continued to champion the metaverse as a key part of Meta’s future.
The company adopted the Meta name in 2021 to signal its long-term commitment to augmented and virtual reality technologies.
Even so, the division has faced heavy financial pressure. Meta’s AR and metaverse unit has accumulated more than $60 billion in losses since 2020.
Meta’s planned reductions to its metaverse spending are tied to the company’s 2026 budget process, Bloomberg reported.
The discussions took place during a series of meetings held last month at CEO Mark Zuckerberg’s residence in Hawaii.
Sources told the outlet that cuts of this magnitude would likely trigger layoffs as early as January.
Meta has not responded to Reuters’ request for comment.
The report comes as Meta pushes to strengthen its position in Silicon Valley’s fast-moving artificial intelligence race, especially after its Llama 4 model received a weaker-than-expected response.
Earlier this year, the company created a new Superintelligence Lab and brought in Scale AI CEO Alexandr Wang to help steer its advanced AI strategy.
The move followed a $14.3 billion investment that secured Meta a 49% stake in the startup.
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