Meta to Cut Metaverse Budget by 30% - Reports

Meta Considers Significant Metaverse Division Budget Cuts

According to a report from Bloomberg, referencing unnamed sources, Meta is reportedly contemplating substantial reductions to its Metaverse division.

Potential Budget Reductions and Layoffs

Executives within the company are currently evaluating a potential budget decrease for the virtual reality platform, potentially reaching as high as 30%.

These potential cuts are also expected to involve workforce reductions, indicating a broader restructuring effort.

Reflecting Limited Interest in the Metaverse

Should Meta proceed with these plans, it would signal a diminished level of enthusiasm for offerings such as Horizon Worlds, Meta’s social virtual reality environment.

A lack of consumer and industry adoption of Meta’s virtual reality hardware is also contributing to this potential shift.

Investor Skepticism and Financial Losses

Since the company’s rebranding in 2021, investors have consistently expressed concerns regarding Meta’s resource allocation towards Metaverse projects.

These projects have incurred billions of dollars in losses on a quarterly basis, fueling investor apprehension.

Successes in AI and Smart Glasses

Meta’s ventures into Artificial Intelligence (AI) and smart glasses have demonstrated greater success.

Despite these positive developments, concerns persist among investors regarding the overall scale of the company’s investment strategies.

Market Reaction

Interestingly, Meta’s stock price experienced an increase following the publication of this report.

No Official Comment

A request for comment directed to Meta was not immediately answered.