Meta Platforms(US:META) Sou Hu Cai Jing·2025-12-05 11:04Core Viewpoint - Meta is planning to reduce its metaverse budget by 30% by 2026, reallocating funds to AI glasses and wearable devices, with potential layoffs in the metaverse division starting as early as January [2][5][6] Group 1: Budget Cuts and Resource Reallocation - The reduction in the metaverse budget is part of Meta's overall budget planning for 2026, with a goal of achieving a 10% overall cost reduction across departments [6] - The metaverse division, which includes products like Meta Horizon Worlds and Quest VR hardware, is expected to face significant cuts due to underperformance and high spending [5][6] - Meta's spokesperson indicated that the company is shifting investments from the metaverse to AI glasses and wearable devices, citing positive progress in these areas [5] Group 2: Financial Performance and Market Reaction - As of December 4, Meta's stock price rose by 3.43% to $661.53 per share, with a market capitalization of $1.67 trillion [2] - The Reality Labs division, which encompasses the metaverse projects, has incurred losses exceeding $70 billion since early 2021 [7] Group 3: Leadership and Strategic Focus - Meta has made leadership changes, moving executives from the metaverse division to focus on AI products, indicating a strategic shift towards AI and consumer hardware [8][9] - The company is expected to invest hundreds of billions in data centers and AI development in the future, reflecting a pivot away from the metaverse [9]