Overview
- The proposal, discussed during 2026 budget meetings at Mark Zuckerberg’s Hawaii estate, would reduce Reality Labs funding by as much as 30%, according to Bloomberg.
- Management is considering layoffs associated with the pullback, with a January 2026 start described as possible but not yet decided.
- Savings are expected to be redirected to artificial intelligence efforts, expanded data‑center capacity, and AI‑enabled wearables such as smart glasses, according to people familiar.
- Reality Labs has accumulated tens of billions in losses, including roughly $4.4–$4.5 billion in operating losses in a recent quarter against about $370–$470 million in sales.
- Meta did not comment on the reports, and the stock rose roughly 3% to 7% after the news circulated.