Overview
- Executives have discussed reductions of up to 30% for Reality Labs’ metaverse spending in 2026 during strategy meetings, including sessions at Mark Zuckerberg’s Hawaii compound, according to multiple reports.
- The deepest trims are expected to hit the Quest virtual reality unit and Horizon Worlds, which account for most metaverse-related outlays.
- Layoffs are under consideration with timing as early as January 2026, though no final decisions have been announced.
- Reality Labs has accumulated more than $70 billion in losses since 2021, and Meta’s stock rose roughly 3%–5% after the reports as investors signaled approval.
- Meta says it is shifting some investment to AI-linked hardware such as Ray‑Ban smart glasses and other wearables, alongside continued work on large models and chatbots.