Overview
- Bloomberg, citing people familiar with the talks, reports Meta executives have discussed cutting Reality Labs spending by as much as 30% for 2026, though plans are not finalized.
- The deepest reductions are expected in the virtual reality group that makes Quest headsets, with Horizon Worlds also affected, and layoffs could begin as early as January.
- The potential changes emerged from Meta’s annual budget process, including November strategy meetings at Mark Zuckerberg’s Hawaii compound, where most teams were asked to find 10% savings.
- Investors reacted positively to the reports, lifting Meta shares roughly 3% to 6% and adding about $69 billion in market value.
- Reality Labs has accumulated more than $70 billion in losses since 2021 as Meta shifts emphasis to AI models and AI-linked hardware, including recent hiring of Apple design leader Alan Dye; the company declined to comment.