Meta Shifts Reality Labs Spend Toward AI Glasses as Reports Flag Up to 30% Metaverse Cuts

Overview

• Bloomberg reported Meta is considering budget reductions of as much as 30% for its Metaverse operations, focusing cuts in VR and Horizon Worlds.
• A company spokesperson said investment within Reality Labs is moving from broader Metaverse work to AI glasses and wearables, with no wider changes planned.
• People familiar with the plans told Bloomberg that layoffs are likely to be included, though final decisions have not been made.
• Citi reiterated a Buy rating and an $850 price target, calling the move a strategic realignment to accelerate Super Intelligence Labs and FY2026 AI initiatives.
• Jim Cramer said Mark Zuckerberg is aggressively hiring, including poaching talent from Apple such as an executive who ran its liquid glass portfolio.