Meta Plans Big Cuts to Its Metaverse Efforts

Group 1 - The company is planning to implement budget cuts for the upcoming year, with a focus on the Metaverse, which may see cuts of up to 30% compared to a general 10% cut across other teams [2][5][6] - Mark Zuckerberg has previously positioned the Metaverse as the future of the company, aiming for it to reach a billion users and support significant digital commerce [3][4] - Despite the cuts, the company will continue to invest in augmented reality (AR) glasses, indicating a shift in focus from immersive virtual worlds to hardware development [5][8] Group 2 - The market for the Metaverse has not developed as anticipated, leading to a reassessment of spending in this area [5][6] - The VR group is expected to be significantly impacted by the Metaverse budget cuts, although investments in AR glasses, such as the Ray-Ban partnership, will continue [7][8] - Analysts have reacted positively to the news, suggesting that the cuts may be bullish for AI spending, indicating a strategic pivot within the company [7]