Overview
- Executives discussed reductions as high as 30% for the metaverse group, including Quest and Horizon Worlds, during 2026 planning talks held at Mark Zuckerberg’s Hawaii compound.
- Meta confirmed it is reallocating some Reality Labs investment from metaverse projects to AI glasses and other wearables.
- Layoffs could begin as early as January 2026 according to reports, though final decisions have not been made.
- Reality Labs has racked up more than $70 billion in cumulative losses since 2021, intensifying calls for spending discipline.
- Meta shares rose roughly 3% to 4% after the reports as investors welcomed a pullback and a shift toward AI models and devices.