Overview
- Executives discussed reductions as high as 30% to the metaverse group in 2026 budget talks, Bloomberg reported.
- A final decision has not been made, though people familiar say layoffs could begin in January if deeper cuts proceed.
- The proposed reductions would primarily affect the Quest VR hardware team and the Horizon Worlds virtual spaces product.
- Meta said it is moving some Reality Labs investment from metaverse projects to AI glasses and other wearables and indicated no broader changes.
- Reality Labs has accumulated losses exceeding $70 billion since 2021, and Meta shares rose roughly 4% after the report.