Overview
- Executives have discussed reducing 2026 spending on metaverse efforts by as much as 30%, according to multiple reports, though no final decision has been made.
- The proposed reductions would chiefly target the Quest VR group and Horizon Worlds, with layoffs possible as early as January if plans proceed.
- Meta confirmed it is reallocating some Reality Labs investment toward AI-enabled glasses and other wearables, citing stronger momentum in those products.
- The discussions followed November budget meetings at Mark Zuckerberg’s Hawaii compound, where most groups were asked to find about 10% savings and the metaverse team was pressed to go deeper.
- Meta shares rose roughly 3% to 7% on the reports, as investors weighed Reality Labs’ cumulative losses of more than $70 billion since 2021, including a $4.4 billion loss last quarter.