Meta’s Zuckerberg plans deep cuts for Metaverse efforts

Core Insights - Meta Platforms Inc. is expected to significantly reduce resources allocated to the metaverse, which was previously framed as the company's future direction [1][6] - Proposed budget cuts for the metaverse group could reach up to 30% next year, potentially leading to layoffs as early as January [2][4] - The metaverse group's budget cuts are part of the company's annual planning for 2026, with a standard request for 10% cuts across all divisions [3] Financial Performance - The metaverse group, part of Reality Labs, has incurred losses exceeding $70 billion since 2021 [7] - Investors have expressed concerns regarding the metaverse initiative, viewing it as a resource drain [5][8] Strategic Shift - Meta's focus is shifting away from the metaverse towards developing AI technologies and hardware products, such as AI chatbots and smart display glasses [7][8] - Analysts have suggested that Meta should consider discontinuing its metaverse projects, like Horizon Worlds, to concentrate on more profitable ventures [8]