Meta is reportedly considering significant budget reductions, potentially up to 30%, for its ambitious Metaverse division, Reality Labs. Citing anonymous sources, a Bloomberg report indicates these cuts could also lead to layoffs, signaling a strategic shift for the tech giant.
This potential move reflects a broader lack of interest in Meta's virtual reality offerings, including its social VR platform Horizon Worlds and associated hardware, from both the industry and consumers alike.
Since its rebrand to Meta in 2021, the company has faced persistent investor skepticism regarding its substantial resource allocation to Metaverse projects. Reality Labs, the division responsible for these initiatives, has consistently reported billions in losses each quarter. While Meta's investments in AI and smart glasses have shown more promise, concerns remain among investors that the company's overall spending plans are excessively high.
Despite the news of potential cutbacks, Meta's shares saw a rise following the Bloomberg report. Meta has not yet provided an immediate response to requests for comment regarding these reported plans.
