Meta is set to slash its spending on the metaverse by as much as 30%, according to a report from Bloomberg. The drastic budget cuts come just a few years after Facebook rebranded itself as Meta, marking a renewed focus on the metaverse concept.
The company's annual budget planning for 2026 has revealed significant slashes to the metaverse division, with potential layoffs expected in early next year. Insiders claim that the department is being asked to make deeper-than-average cuts due to the technology's relatively slow adoption rate.
Despite CEO Mark Zuckerberg's ongoing optimism about the metaverse's long-term prospects, the company's annual performance suggests a more cautious approach. The Reality Labs division, which encompasses the metaverse, has lost over $70 billion since 2021.
Zuckerberg himself has largely avoided discussing the metaverse in public and during earnings calls. Instead, Meta is reportedly shifting its focus to more promising areas such as large AI models and chatbots. Additionally, hardware products linked to AI experiences, like Ray-Ban smart display glasses, are expected to receive significant investment.
As investors and consumers continue to question the viability of the metaverse concept, it appears that Meta is finally taking a step back to reassess its strategy. The future of this ambitious project remains uncertain, but one thing is clear: significant changes are on the horizon for the company's metaverse division.
The company's annual budget planning for 2026 has revealed significant slashes to the metaverse division, with potential layoffs expected in early next year. Insiders claim that the department is being asked to make deeper-than-average cuts due to the technology's relatively slow adoption rate.
Despite CEO Mark Zuckerberg's ongoing optimism about the metaverse's long-term prospects, the company's annual performance suggests a more cautious approach. The Reality Labs division, which encompasses the metaverse, has lost over $70 billion since 2021.
Zuckerberg himself has largely avoided discussing the metaverse in public and during earnings calls. Instead, Meta is reportedly shifting its focus to more promising areas such as large AI models and chatbots. Additionally, hardware products linked to AI experiences, like Ray-Ban smart display glasses, are expected to receive significant investment.
As investors and consumers continue to question the viability of the metaverse concept, it appears that Meta is finally taking a step back to reassess its strategy. The future of this ambitious project remains uncertain, but one thing is clear: significant changes are on the horizon for the company's metaverse division.
so i feel like meta was already being super cautious with their spending on the metaverse 
from what i've seen online people are kinda split on this - some think it's a good move to cut costs and focus on more proven tech areas, but others think it's a sign that they're giving up too soon on something they really believed in 
but at the same time i do wonder if they were being overly optimistic about the metaverse from the start 
... now it seems like zuckerberg is taking a more cautious approach 
... still, it's interesting to see how this plays out in 2026 
... will the metaverse take off or fade away? 
. still, it'll be interesting to see how this all plays out. layoffs could be a sign of things to come, but also maybe an opportunity for the company to streamline & refocus 
. I'm still curious to see what they'll do next, maybe they'll pivot into something else and come back stronger... or maybe this is it for the metaverse at Meta 
all that hype around VR/AR and we're still waiting for something concrete to drop. AI models and chatbots are where the real money's at, imo 
.
meta was so hyped about the metaverse and now it seems like they're just gonna cut costs and lay people off... i get it tho, 70 billion lost is crazy 
just read that Meta is slashing its spending on the metaverse by like 30% 
! I'm kinda surprised tbh - all eyes were on Mark Zuckerberg and his Metaverse plans 
. But, idk, maybe it's time for them to take a breather? 
Those Reality Labs losses are just crazy 
, that's where the future is at! 
Hardware products with AI experiences getting more funding too? 
That's like, the real tech growth right there 
. One thing for sure tho - Meta's got some major changes coming up 
!
. anyway, gotta see how this all plays out, maybe they'll surprise us and make the metaverse actually work 
and saying "okay, maybe we got ahead of ourselves here". It's not necessarily a bad thing. Sometimes you gotta take a step back and regroup before you can move forward. But, for investors and consumers, it's definitely gonna be interesting to see how this all plays out 
. think they need to focus on other areas that are actually generating revenue, like AI models and chatbots 
. 70 billion dollars lost since 2021 is a lot to write off... I hope they're making smart cuts and not just laying people off willy-nilly 
So Mark Zuckerberg's like "We're gonna change the world with this metaverse thing" and now it's like "Uh, we need to cut our losses"... I guess you could say they're trying to "level up" their budget 
sounds awesome! but for now, it's more like a niche thing 
? It's interesting to see them shifting focus to AI models and chatbots - that could be where the future lies 
#MetaverseRealityCheck #AIoverVR #MetaShiftsFocus
They're actually kinda cool! And Meta's focus on large AI models and chatbots could lead to some game-changing innovations.
, but then came streaming services and changed everything. The point is, even if an idea doesn't take off as planned, there can still be value in the experimentation process.